7 Ways To Cut Costs When Buying A Home

2020 has been a really hard year and with job insecurity and redundancy many people have had a drop in income. So if you are looking to remortgage, buying a house to downsize or moving to save money you are likely to be looking at the best most cost-effective way of doing this. 

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So let's have a look at how to do this by looking at how to cut costs when buying a house.

Make a simple spreadsheet of your incomings and outgoings

Before you buy a home you need to know the state of your finances. Examine your bank balance and if you need to save money consider cancelling any direct debits and standing orders you don't really need. Look at transport costs and ways to save money here, for example, can you car share, can you go on the bus instead of the train, can you cycle to work? Look at your household bills and consider comparing utilities. Can you save money on food, eating fewer takeaways for example, and downshifting on branded items to supermarket out? Check out my 100 ways to save money in 2021 for more inspiration.

Get together the largest deposit you can

If you get together a large deposit you can drive down the cost of the mortgage. The bigger your deposit the cheaper the payment on your mortgage loan will be. However, make sure you have enough money left for any essential work to the house as well as furnishings.

Work out actual costs when comparing loans

There are a few sweeteners with certain mortgages. Some will have a low deposit, and some will have low fees, and whilst both of these are great if you don't have a lot of money for upfront fees, its the cost of the long term loan you really need to look at. So balance this up. Using a UK mortgage repayment calculator can really help you compare costs.

Compare survey fees and look to renegotiate

A house survey s an expert inspection of a property's condition and identifies any problems to a prospective buyer. It's important that you have a home survey especially if you are taking out a mortgage. It can also be a negotiating tool. If there are problems with the survey and it will take money to put these issues right you can negotiate on the price of the home and thus save you money.

Check legal fees carefully

Conveyancers and solicitors can have a list of legal fees. Solicitors are usually more expensive than conveyancers and are qualified lawyers, so they can offer a full range of legal services. Conveyancers are usually cheaper than solicitors but are perfectly capable to deal with a straight forward purchase. Check through the paperwork carefully before you sign on the dotted line, as there may be hidden fees when you complete. You could even choose a fixed fee conveyancer so you know there are no hidden costs.

Cash buyers can save money

If you have enough cash to buy a home outright, maybe you've been left an inheritance for example. this can save you money when buying a home. You won't need a mortgage and you can save with associated fees as well as be in a strong negotiation position when buying the home.

Think about buying at auction

For some really big savings consider buying at auction. There are regulations in the UK to make it a transparent process but you definitely need to do your homework first. Make sure you view the property beforehand and take someone knowledgable with you if possible, such as a builder. 

So here are 7 ways to cut costs when buying a home. Do you have any tips you can recommend?

*Collaborative post

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