How can you pay less to buy your home?

Property prices may or may not be falling, depending on who you listen to, and where in the country you are. But whether they are going up, down or staying roughly where they are, property is expensive, and buying a home will stretch most of us to our limits.

We look at ways to cut the cost of buying your home. At Continuum, we believe that there are two distinct ways to pay less – and we can help with both of them.

The art of the deal

You don’t have to be President Trump to know that there are deals to be done when property is being bought and sold.

House buying is one of the few areas where we Brits seem to be prepared to haggle, and we are accustomed to treating the price agreed by the lender and estate agent as the starting point for offers. In England and Wales at least, these tend to be lower than the asking price (things are very different in Scotland).

Of course, the seller has a very different view of what their property is worth than you have as a potential buyer. He or she wants to get as much as possible, but the simple fact is any property, like anything else, is only worth what someone is prepared to pay for it.

So, the thing to focus on is what you are prepared to pay for a particular property. It is only worth more if someone else wants to pay more for it.

So how can you negotiate? The first thing is to look at the market. If things are buoyant, and homes like the one you want are in demand, you might have little room for manoeuvre, and need to put in a high offer to secure your dream home.

But remember, you can’t negotiate down once you have made an offer, so you might as well make a low bid, and up it if you have to.  You probably will not lose the chance to buy, because once you have shown interest, the estate agent should always come back to you to see if you are prepared to make a higher offer, to beat a higher bid from another potential buyer

There is an exception to this – if a buyer makes a bid on or near the asking price and makes it conditional on taking the property off the market.

This kind of approach can be especially effective in the current market, when buyers may be fewer and properties are taking longer to sell.

But there is still a way we can help you secure a bargain. If you have the finance in place, and can make a credible, but low bid, your offer could be accepted if the seller is in a hurry to sell. A growing family, a relocation or a need to secure the property of their dreams could all mean that a low bid can be accepted if you are in a position to move fast.

So, the first way to potentially pay less is to negotiate from a position of strength, with your mortgage ready. A call to us at Continuum could help. We could get a mortgage in principle agreed before you have decided what particular property to buy – letting you move quickly enough to meet the sellers needs.

Cutting the cost of your mortgage

Getting a good deal on the house sale is vital – but so is getting an appropriate deal on your mortgage. There are dozens of lenders and hundreds of mortgage products, and finding the most suitable deal needs expert support.

It is not simply a matter of finding the lowest interest rate, although this can be an important factor in saving money in the years to come. There are fees which can boost the real cost of a mortgage, and features – such as portability, or the ability to overpay – which may be relevant to you.

The answer for cutting the cost of your mortgage is exactly the same as the answer for arranging it early to support negotiations. Simply call us at Continuum, and our experts will work with you to find the mortgage you need.

If you are thinking about a move, call us today. We might be able to ensure it costs less than you think.

The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.

Your home may be repossessed if you do not keep up repayments on your mortgage.