Mortgage UK: Couple reveal savings tips after saving £26,000 in three years | Personal Finance

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.

Related articles

Martin Lewis: This mortgage choice could save you thousands Mortgage free: Expert reveals how to ‘wipe years’ off mortgage

READ MORE

Mortgage free: How homeowners slashed length of mortgage by 11 years

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.”

READ MORE: Martin Lewis reveals top paying Lifetime ISA – how to boost savings

Mortgage UK: Couple in pictures and house keys

Mortgage UK: The couple, from Coventry, saved £26,000 in three years (Image: GETTY • HABITO)

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.

DON’T MISSMartin Lewis reveals mortgage tips as homeowner saves £54,000 [VIDEO]Mortgage interest payments: State could provide support on thousands of pounds owed [GUIDE]Help to Buy ISA: Claiming the 25% bonus? Why you may need to pay up to £50 fee [EXPLAINER]

Related articles

ISA: Savings expert explains a common mistake savers make Lifetime ISA savers can get £1,000 bonus a year but ‘strings attached’

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!”

Mortgage UK: Alice and Liam in pictures

Mortgage UK: Alice and Liam had been privately renting for four years and were keen to purchase (Image: HABITO)

READ MORE

Water bills: This hack can slash £350 off bills now

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.

Trending

Mortgage UK: Best place to invest in property in UK according to Howsy

Mortgage UK: Map shows the best place to invest in property in UK according to Howsy (Image: EXPRESS)

“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.”