Allison Homes shares expert mortgage saving advice

Here at Allison Homes, we understand the challenges homebuyers are facing with mortgages, so we have enlisted the help of independent mortgage expert Jason Blunden, Managing Director at Evolve Financial Solutions, for his top tips on getting the cheapest mortgage possible.

John Anderson, CEO of Allison Group, said: “We know that it is a tough market to get the best rate on a mortgage, but we hope that Jason’s tips can help alleviate homebuyers’ concerns and inform them that there is a plethora of ways to save on a mortgage.”

1. The larger the deposit, the larger the saving:

Deposits are one of the most important aspects of saving money on your mortgage, as a larger deposit means that homebuyers will be looking at a mortgage with a better rate of interest.

Jason clarifies: “The deposit doesn’t have to be all the homebuyers’ money, it can be gifted to them by a family member to help them make up their minimum 5% to buy a property. There are schemes on offer, such as Generation Home which enables homebuyers and their families to pool their money for a deposit, with a potential return on investment for the family members contribution depending on the growth of the property.”

2. Clean credit history:

“It’s very important to understand that all payments are made and that homebuyers keep up to date with any financial commitments, such as credit cards or loans. Any late payments or missed payments, or even payments not happening at all, can lead to things such as defaults or court action. This in turn will lead to some lenders not granting mortgages.” explains Jason, highlighting the importance of making payments for loans and credit cards on time to secure the best rate on a mortgage.

3. Know your budget:

A common mistake when applying for a mortgage is prospective buyers not calculating their budget correctly. Jason goes on to say: “It’s important that those looking to secure a mortgage have a meeting with an advisor to understand exactly what they can afford. There are a lot of small costs, such as a gym membership or a daily Starbucks, that could be cut back on and help stretch the mortgage budget further.”

4. Look out for energy savings:

We pride ourselves on our homes’ energy saving capabilities, which can help homebuyers secure a mortgage through the savings they will make on their energy bills.

Jason explains: “When considering your first purchase, don’t forget to consider the extra costs associated with running a property. Often looking at a new build property can save you on average £184 per month, so this can be brought into consideration when you are looking at the monthly costs of a mortgage.”

Homebuyers can also consider green mortgages, which are designed to reward those who prioritise buying a home that has eco friendly features, or is energy efficient. Buyers can receive a better rate by taking advantage of these types of mortgages, and at Allison Homes we have a variety of energy efficient homes on offer.

5. Utilise homebuying schemes:

Jason’s final point emphasises the importance of taking advantage of the various homebuying schemes available. He said: “Developers can look at helping with slightly higher mortgage costs by offsetting these with a subsidy, or even helping towards a larger deposit, so it’s always great to chat with a sales executive to know exactly what offers are available to you.”

To help make mortgages more affordable, we have partnered with Own New on its Rate Reducer scheme. When purchasing with us, buyers can access mortgage rates below 1.87 per cent*.

6. Buying property is a solid investment:

Historically, homebuyers could always rely on property prices rising, and now they could be waiting a very long time for interest rates to drop to levels as low as we’ve seen in recent years. The rates are much more likely to normalise soon, so we would recommend not waiting around too long!

To find out about the homes we have on offer and speak with our sales team, visit https://allison-homes.co.uk/developments/.

*Full terms and conditions apply, visit https://allison-homes.co.uk/own-new-rate-reducer/. Example assumes a 5% homebuilder incentive and is based on mortgage rates available in the market, with a 2 year initial period and an LTV of 75%. Savings made in the initial fixed period. Independent financial advice must be sought from a regulated mortgage broker to access this scheme. Your property may be repossessed if you do not keep up repayments on your mortgage or other debt secured on it. Rates valid as of 18/03/2024.