If you have got to the point where you need to move house, whether this is because you have an ever-growing brood or whether you have a new job in a different place in the country, you need to consider your finances.
Moving house is an expensive endeavor. You need to pay for the new pad that you buy, factor in property lawyer fees, home loan fees, searches, and insurances.
However, there are ways that you can save while moving. Take a look at this guide to help you claw back the pennies when you begin your property hunt.
#1 Home Loans
If you are seeking a home loan to fund your next purchase, then try to save up or utilize the capital from the value built up in your current home to put towards a deposit. With a larger deposit, your value to mortgage ratio decreases.
The greater percentage of the property value you need to borrow, the higher the fees, and the greater the interest you need to repay. A larger deposit will show a lender that you are committed to your home purchase and that you have money in the bank.
This makes you an attractive proposition. Home loan lenders may waive initial application fees or may even give you cashback on your mortgage to attract you to their services. Try and avoid brokers as they are often paid a commission for guiding their clients to specific products, whether they are beneficial to them or not.
While you may not be able to build your own home, you can employ a company like Hansen Living to do this for you. They can take your budget, your requirements, and your dream and turn it into a reality made from bricks and mortar.
These custom home builders work with you every step of the way to create a house bespoke to you. This can be an attractive option as you won’t have to worry about money going to third parties other than your architect and house builder.
You may not need a mortgage, and you can utilize different solicitors rather than the traditional conveyancer. Building your own home requires money upfront, but it can pay you back in kind over the coming years, especially if you install solar panels or other money-making and cash saving initiatives.
#3 Stick Within Your Means
Never stretch yourself when buying a home. In the current unstable economic climate, you need to ensure that you have savings in the bank. This is true even when putting a deposit down on your next pad. Make sure that your mortgage repayment doesn’t stretch you too far and that you could cope if interest rates increased.
Save money by opting for a fixed-rate mortgage or an offset alternative. Variable rates can be too risky, so check out all of the options.
Moving house should be a fun and exciting time, but it often turns stressful when the money dilemmas come into play. Work out your budget, stick to it, and always do your research before taking the plunge on a property purchase.