The romance around Valentine’s Day often encourages couples to take the next step and move in together.
Are there any key differences between buying as a couple or on your own? What do you need to consider when buying a home as a couple? Our Mortgage & Protection Adviser, Paul Duncan, gives his top tips.
1. Make the most of two incomes and savings
Having two people on the application means you will have two sources of income, so you are likely to be able to borrow more money for your mortgage. Pooling savings together will also increase the likelihood of a higher deposit; therefore you may be able to get a lower loan-to-value, which is one of the key factors in determining the interest rate of your mortgage.
- Both commit to saving
As mentioned above, having two people on the application means you are more likely to be able to pull a higher deposit together. However, this will only happen if you are both dedicated to saving in advance of your application. Set yourself realistic targets for savings and set yourselves spending limits, trying to cut back on unnecessary expenditure such as leisure activities.
- Make sure you’re both credit ready
If you are making a joint mortgage application both of your credit histories will be considered. Therefore, it’s important that you both check your credit history well in advance of applying. If necessary, make sure you take all possible steps in order to improve your credit score.
- Take advantage of housing schemes and help with savings
The government offer Help To Buy ISAs for first time buyers, which are available to each buyer, rather than each household. This means that if you are both first time buyers, you may be able to save up double the amount of money which you could if you were a single applicant. If you don’t want to put your savings in this type of account but still want the help of this type of scheme, Help to Buy is available for first time buyers purchasing a new build property up to a certain value. Joint applications have different criteria for Help to Buy, so it may be best to speak to an adviser who can explain the differences to you.
Looking for more information? Contact Paul or one of our other specialist advisers today on 0800 652 6649 or email [email protected]
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.