With rental outgoings and day to day living costs to cover, saving money can be a huge challenge – especially when the aim is to store away the substantial amounts that are required in order to purchase a property. However, one couple have explained how they managed to save tens of thousands of pounds within three years, in a bid to get a mortgage.
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Alice, 29, and her fiancée Liam, 28, from Coventry, were first-time buyers looking to get on the property ladder.
At the age of 25, the pair were keen to own their own home – having rented for a number of years.
Alice, who works for a bank, explained: “We’d been privately renting for four years but always wanted to own our home, especially before thinking about starting a family.
“Owning a home gives you a real sense of security and also it’s a future investment.”
In order to make the purchase, the couple saved a whopping £24,000 for a 10 percent deposit on their new home.
But, with fees for surveys and lawyers to pay for, they ended up saving around £26,000 in three years.
At the age of 28, they bought their first home – four years earlier than the national average for first-time buyers.
“It’s really challenging for our generation to get on the property ladder, especially when it comes to saving for a deposit,” Alice added.
What’s more, the couple managed to save the huge amount of money without the Bank of Mum and Dad.
“We had no help whatsoever from family, our deposit was all saved from hard work and dedication,” she said.
“We both have full-time jobs so were lucky enough to be able to save each month.
“That said, we did have to cut back on eating out, weekends away and just treating ourselves generally which has been hard but definitely worth it in the end!”
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Alice and Liam, who works as a telecoms engineer, saved the cash without an ISA or saving scheme, and required savings of around £360 each a month over the three years.
With the money in the bank for the deposit, the pair found a three-bed, 1930s semi-detached home with a brand new kitchen-diner extension – a home which they decided would be the perfect place to settle down.
With a mortgage deposit of £24,000, they took out a mortgage of £216,000 for the house – buying it for £240,000.
When looking for a mortgage, the couple carried out plenty of research – including heading to Martin Lewis’ Money Saving Expert – where the pair found Habito.
“We use technology companies for other services, Netflix, Amazon and Deliveroo – so it made sense for us to look online when looking for a mortgage,” Alice said.
Fast forward 10 days form their initial online conversation, and the couple landed a mortgage offer.
The couple went on to choose a five-year fixed-rate (2.27 percent) mortgage with Virgin.
Alice explains: “We went for a five-year fix for security and because we’re getting married in 2021 so wanted to know exactly how much we could afford to spend on our big day.”
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