Get your savings account ready for potential home purchase

With new council power multiple homes may become available to the public.

07:44 25 June 2013

It appears as though permission has been given to build more than 400,000 homes which have still not been built. Labour is considering giving councils powers to ensure that people are actually building on the land, rather than waiting for the land to increase in value before building.

 

If you’ve been waiting for a home, keep an eye out in the near future in case some people are prodded into building. Here are a few ways you can have your savings account ready for a home purchase.

 

• Initial payment—this is sometimes referred to as a down-payment, but it’s the amount that you initially put towards the purchase of a home and the rest is typically financed. Don’t use all of the funds in your savings account for the down-payment. Keep some for unexpected home purchases and repairs as well.

 

If you haven’t been able to set up the amount you want, start putting any extra funds in your savings account as soon as possible.

• Credit rating—ensure that you pay all of your bills in a timely manner in order to keep your credit rating high. If you have some bills that can work with your expenses and won’t report a negative mark on your credit rating you might be able to work some funds around, but otherwise make sure payments are on time, even if you have to take a little out of your savings account.

 

• New expenses—there are bound to be tonnes of expenses when you move into a home, even if it’s brand new. You might want to paint, decorate, and furnish your new home with different things than you currently have. You may also encounter the need for appliances. This is where the extra contents of your savings account can help you out.