The Inside Edge
Picture the scene. The champagne is on ice, you’ve planned everything to the finest detail and the moment is right. You get down on bended knee and ask that all important life-changing question “Darling, shall we take a look into mortgages tomorrow?”
More and more couples are choosing to sacrifice their weddings so that they can start saving for their dream home instead. The findings released by Glasgow Credit Union have revealed that 56% of couples would choose to put money away for their new home because saving for both would be too expensive.
Times have certainly changed! Paul Mcfarlane, Head of Operations at Glasgow Credit Union, said “As the economic downturn continues to bite, young couples are increasingly being forced to choose between their dream wedding and their dream home.
“The current climate means that couples have to make sacrifices, especially with demand for a minimum 10% deposit on mortgages. Scottish couples need to save an average of £15,800 to get a foot on the property ladder.”
The Council of Mortgage Lenders has reported that the average deposit required by first time buyers is on average 15%. However, more and more lenders are releasing products that require a lower deposit so this figure should start to show a decline in the near future. The report also suggested that with the average UK salary sitting at £26,000, the required 15% deposit rate would be £1000 more than the annual salary. When you consider that the average cost of a wedding today is £21,000 that puts a lot of pressure on couples to save for both!
Mcfarlane added: “This shows just how difficult it can be for couples to save for a home and why they are sacrificing their wedding day to save for these huge deposits.”
So, do you think it’s possible to save for both at the same time? If you’re not willing to sacrifice the gold Rolls Royce or the £3000 wedding dress then it could be a problem, but with lenders releasing more enticing mortgage products it might just be possible. The good news is that it’s no longer frowned upon by society if you do want to invest in your first property before tying the knot. It’s all about putting things into perspective and thinking about what you want in life and when.