**THIS IS NOT FINANCIAL ADVICE! THIS IS NOT GOING TO BE TECHNICAL ADVICE FOR AFFORDING YOUR OWN HOME. THIS IS MY MORE INTANGIBLE AND MENTAL PREP FOR BUYING A HOUSE**
For a while there, I really didn’t think I’d ever be able to afford to start a mortgage. Never thought I’d be able to accumulate enough for a deposit. Never thought I’d be brave or smart enough to navigate the legal side of things.
But here we are. We did it!
Today, I wanted to share what helped us get to this point and my advice to you if you want to do the same (including what I wish I’d done differently!).
Start saving earlier than you plan to buy
This is the biggest one. It takes longer (for most of us) to save up a deposit than you think. If you’re young, start putting aside money now! I really wish I’d been serious about setting aside money while I still lived at home with my mom, as we would have gotten to this point a lot sooner.
Start before you’re ready. Start as soon as you can.
Accept the discomfort of the process
I was TERRIFIED going into this. I didn’t trust myself to make important, life-changing decisions like this. I was worried about the amount of money I was giving over. About making the right decision for the right place with the right company. Afraid we’d struggle afterwards. So many fears!
However, I had to keep reminding myself that it’s perfectly normal to be anxious along this journey because it’s a big deal. Most of us won’t have first-hand previous experience with this, education on this, or financial support from a family member. So, it’s scary! If you’re not scared, you’re probably being a bit naïve or reckless or you’re someone who has a lot of support so you don’t ever worry about money (which is a privilege not afforded to most of us).
Get as much advice and support ahead of time and along the process. Family, friends, mortgage advisor, lawyer, financial advisor, and so on.
You’re not alone. There’s support out there. Accept that it’s okay to be afraid.
Make saving passive and irreversible
Set up a direct debit to your saving place of choice (we used a Money Box LISA) so that you don’t have to think about paying the money into it; it’s automatic. This needs to be non-negotiable and simple for you. Needs to be enough that you won’t be struggling to pay your bills but is significant to make an impact over time. We put in about £30 (me) to £50 (my husband) a week. If and when you can do more, do more.
And it’s crucial that you make it difficult to withdraw that money, otherwise you will! We couldn’t take money out of the Money Box LISA without incurring fees, so we didn’t! The money won’t accumulate if you’re constantly dipping into the account.
Expect it to take longer than you think
Saving may take longer than you think, especially if you have a lower income or are looking to buy during a time of high house prices. It’s just a sad, frustrating reality we have to accept.
Also, if you’re buying new, expect it to take longer. Expect it to have many more hoops and loops you have to go through other than just handing over the money and moving in.
- Lawyers
- Surveyance of property
- Chain delays (if the person you are buying from is trying to find a property themselves etc)
- Property repairs
- Setbacks with manufacturer or resourcing materials for new builds (ours didn’t have enough bricks at one point! and the manufacturer for our kitchen closed down so had to pick a new one)
- Weather delays for new builds
- And more I’m not considering right now!
Every part of the process is likely to take longer than you think, so accept and expect that.
Be flexible on what you will afford
You may not be able to afford the house of your dreams (unless you choose to save for much, much longer) and that’s okay. There are houses that may be in your budget that don’t fit your ideal home, but you can make it work. Getting on the property ladder and changing home later is an option, don’t forget!
Look around different areas to what you imagined, too. I didn’t expect to land where I did but it was a happy medium and ticked the boxes we wanted.
In the UK, the further north you go, the lower the property prices, so consider this if location isn’t a huge deal breaker for you.
Eyes peeled for the deals and incentives
Go for a savings account that incurs compound interest and provides you with extras. Money Box (and many others, I assume, so look out for this) will offer matches or additional income to your cash pot with each input you make. You want your money to work double time! Don’t just put money in; opt for an account that also adds money in for you.
Secondly, when you’re speaking to sales advisors or estate agents and such at the buying stage, look for incentives, discounts, offers, deposit support etc. We bought a new build, so these are more frequent, but you never know unless you ask! The account you’re using for your deposit could also have incentives in this way.
Ask your mortgage advisor if you’re not sure.
Financially plan for after the mortgage starts
It’s not just about affording the deposit for the house, it’s about affording to live comfortably after the mortgage starts. Some people are so focused on the lofty deposit sum that they forget about ensuring that will be financially stable once they are paying for their mortgage and any additional costs that comes with buying and owning a property.
- House insurance
- Income insure
- Life insurance
- Repairs and amendments (no more landlord to do it all for you!)
- Furnishings (if the case may be)
Again, this is NOT FINANCIAL ADVICE! This is just my advice and opinion from my own experience, as it’s now almost a year later (wow!) since we found where we wanted to buy.
Sincerely,
S. xx
S. R. Crawford 