Recent reports suggest that house prices in the UK are rising at the fastest rate since 2004, and this development is not unique to our part of the world. Mirrored by rises in the USA, Canada, New Zealand, and many more westernised nations, becoming a homeowner places prospective buyers in tricky situations. While there is, unfortunately, no magic wand that can be waved to make prices go down, there are at least some options and alternatives we can use in moving forward, if you know where to look.
Using a Modern Mortgage Broker
For those dead-set on going the traditional route, especially if you already have a location or property in mind, one of the best ways to save money is through a cheaper mortgage. As much as an overly simple solution as that statement can seem, there are real and often overlooked options in the modern age that can help buyers achieve this feat. To this end, consider moving away from traditional mortgage brokers, and adopting a more contemporary online system.
Modern online brokers like Trussle can accomplish feats that a traditional system cannot. Using advanced algorithms and data scraping software, Trussle allows buyers to speak to a fast mortgage broker and sort through a much wider range of options than older systems allow. Offering free advice, services like this compare over ten thousand individual plans, averaging customer savings of £290 a month. With mortgages so often coming down to the wire, this amount can make or break your perfect home purchase.
It might seem a downgrade to suggest taking a smaller home, but in the age of efficiency, a less expansive home can be worth a look. We know, there’s a lot of stigma about owning a smaller home, but for those looking past what others think, a more minimalist philosophy is about more than just lower purchasing and ongoing costs.
A smaller home means lower energy bills, it means less time cleaning, and a smaller environmental impact, it can facilitate closer family bonding, and much more. Make no mistake, while a larger estate is more traditional, smaller homes are much more in fashion, and by leveraging newer technology, than can be just as comfy as the alternative. Plus, if the housing market does continue to rise, you’ll be left with an appreciating asset, just one you paid off earlier than most.
Short Term Rentals
Though rentals can go against the spirit of buying a house, in the short term, they can also help give more time to find the right permanent place to put down roots. Finding a cheap (but still healthy and habitable) temporary rental can be a great way to save money and better iron out a plan for eventual ownership. Many people desperate to move into a new home rush their planning, overpricing and making mistakes due to time constraints, and as contradictory as it might seem, taking time off can make your final plan cheaper.
As for which solution or set of solutions is right for you, that’s a difficult question to answer. While cheaper mortgages are always a good thing, the when and where of what to buy can be much trickier. Ultimately, it’s a matter of looking around, making careful value calls, and never rushing into anything without properly thinking it through. Whatever your choice, we wish you the best of luck.