When it comes to securing your dream home, every penny saved matters. But did you know that there’s a lesser-known work perk that can help you on this journey? Alens Gindra certainly did, and The Sun shared his success story.
Meet Alens and His Journey to Home Ownership
Alens Gindra, 25, recently bought his first home in Warrington, and it’s a story worth telling. Along with his partner, Katie, 24, they’ve now settled into their new three-bedroom house. They even have plans for one of those bedrooms: it’s set to become a nursery for their first child due in November.
The Home Details
Their charming terraced house came with an open-plan living and dining area, a separate kitchen, a downstairs bathroom, and a spacious back garden. Upstairs, aside from the soon-to-be nursery, there’s a master bedroom and a home office.
One of the best parts? The house, which was listed for £150,000, was acquired for just £140,000 after their £140,000 offer was accepted. They managed to pull this off with a 5% deposit of £7,000 and a mortgage from Halifax. Thanks to the government’s mortgage guarantee scheme, they could get a 95% loan-to-value (LTV) mortgage.
The Secret Weapon: Sharesave Scheme
What’s particularly interesting is how Alens managed to save up for the deposit. Enter the Sharesave or the Save As You Earn (SAYE) scheme.
What is SAYE?
SAYE allows employees to save directly from their pay, either over a three or five-year period. At the end of this term, you have the choice to either take back all your savings with interest or use them to purchase shares in your employer’s company.
With this scheme, Alens saved £260 every month for three years, summing up to an impressive £9,360 at the end. This was enough not just for the deposit but also to cover additional fees associated with buying a house.
If you struggle with saving, this scheme can be a lifesaver. The money never enters your bank account, so you’re never tempted to spend it.
However, it’s worth noting that while SAYE provides interest, it might not be as high as other savings accounts. It’s a good idea to shop around and compare, using tools like MoneyFacts.co.uk and other comparison websites.
But do all companies offer this? No. You’d need to check with your HR department to find out if it’s available at your workplace.
Other Savings Options
If SAYE isn’t available to you, don’t fret. There are other ways to save, like the Lifetime Isa. If you’re aged 18-39, the government can add a 25% bonus to your savings annually, capped at £1,000.
Making a House a Home
With their savings in hand, Alens and Katie made their new place homely. They brought most of their furniture from their previous rented home, saving a lot of money in the process. And when they needed something new? They found great deals, like a £2,000-worth sofa they snagged for just £100 on Facebook Marketplace.
Advice for Aspiring Homeowners
For those looking to step onto the property ladder, Alens offers some sage advice:
- Mind the Details: Ensure you’re registered on the electoral roll, as this can enhance your credit score.
- Show Financial Responsibility: Consider using a credit card for small expenses and always pay it off monthly. It demonstrates that you’re a dependable borrower.
In the end, securing your first home might seem daunting, but with the right strategies and perhaps a little-known work scheme, your dream home might be closer than you think.