How To Buy A House On A Budget

Buying a house is the largest purchase of your life so, we want you to know all the tips and tricks about how to buy a house on a budget. Now, don’t worry these tips don’t include stopping all holidays abroad, banning gym memberships or cancelling your subscription to Netflix, as Kirsty Allsopp suggests!

When the time comes to purchasing a house, the first question you should ask yourself is whether buying is affordable and the right decision in the longterm. It is better to concentrate on longterm financial security rather than risk financial ruin just so that you can get on the housing ladder.


A mortgage is the most important factor in purchasing a property and how much you can borrow can have a big effect. We advise speaking to an independent mortgage broker, to find out what deals are available to you and how much you can borrow. There are also government schemes available to you like Help To Buy with people only having to put down a 5% deposit in some cases.

If you are wondering how to buy a house on a budget and you are a first-time buyer aged 18 to 39, you could get up to £32,000 from the Government by opening a new Lifetime ISA which launched in April 2017. You can save up to £4,000 a year into the LISA either as a lump sum or by putting in cash when you can. The state will then add a 25% bonus on top if you use it towards your first home. The maximum that the Government will contribute is £32,000, meaning you would have a total of £160,000 including the bonus to put towards your first home. Though bear in mind it would take 32 years to reach this level.

Extra costs

Don’t forget to take in to consideration, extra costs when buying a house on a budget. These could include the mortgage arrangement fee, valuation fees, legal fees, stamp duty, surveys, removal costs, and home repairs.

Credit score

If you are wondering how to buy a house on a budget, don’t forget to check your credit score before you apply for a mortgage. Small mistakes, such as a wrong address on an active account, can cause rejection. We recommend using checkmyfile for all credit reports. Once you have done this, arrange a mortgage in principle. This will let you know how much you can borrow subject to finding a suitable property within a specified time.


Buying a house on a budget, means that you need to do your research. Make sure you use the right online property finders such as Rightmove, Zoopla, or Home. The research doesn’t stop there.

Try to find out as much information as possible about the property:

  • how many viewings it has had,
  • how long has it been on the market,
  • has there been any neighbour disputes,
  • how long is the lease if it has one,
  • what renovations have been done,
  • is there a chain, and
  • has there been any subsidence problems.

Neighbours can offer inside information on the area and you can also get to know what they are like. Knock on some doors, check out front gardens to see if the area is maintained and also ask them what the area is like. The more information you have the more informed you are when it comes to making your decision.

Private sale

Another way to buy a house on a budget, is to write letters explaining you are keen to buy and post it to homes on streets you like. This could result in you finding a property before it hits the market. Also, the seller may give a discount and you will save on estate agent fees. If you have made an offer on a property, then ask the seller to take it off the market. This cuts the chance of gazumping.

Negotiate on fixtures and fittings

Many individuals don’t realise that the seller could take out all fixtures and fittings. Make sure all fixtures and fittings are included in the purchase, right down to the light fittings, TV aerial and black bins! If you are paying extra for any fittings, like a wall-mounted TV, remember that this could be worth less than stated.

We hope the above tips about how to buy a house on a budget help you and if you have any additional questions, then please get in touch.

*Please note: Your home maybe repossessed if you do not keep up repayments on your mortgage.

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