Marianne Curphey
AUTHOR Marianne Curphey| CREATED 15 Mar 2016
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How an adviser helps… you buy a house

Few nations are more enthusiastic about owning property than the British. We love our bricks and mortar, and it’s the ambition of the vast majority of us to pay off our mortgage and own our home outright.

However, with rapidly rising house prices, it’s a dream that seems out of reach for many people in their twenties and thirties. These days, even Russian aluminium magnates can only afford a bedsit in Vladivostok.

A financial adviser will work with you to help you look at your overall finances and come up with a plan. That could help you save and invest for a deposit, or build up capital to pay off your mortgage early.

Start early

When you meet your financial adviser, he or she will help you look in detail at your current finances and suggest changes to maximise the growth potential of your money.

Darius McDermott, managing director of Chelsea Financial Services, says: “It can be tough for young people to put together a deposit – you are going to need between £10,000 and £30,000 even for just a 5% deposit, which is the minimum most lenders require.

“By starting early, and investing in an ISA, your money has the opportunity to grow free of capital gains tax.

“Making regular monthly contributions into an investment can spread the cost and also take advantage of pound-cost averaging.

“This means that when markets are low, you are able to buy more for your money, and you don’t need to worry about trying to time the market.”

Looking to the long term

Philip Pearson, director of P&P Invest, says there is the option for older people to save into a pension. That might help if they are buying a second home or looking for a new house because they have remarried.

Thanks to the new rules on pension flexibility, you are able to withdraw funds from your pension after the age of 55, which makes it a more flexible option, particularly for higher-rate taxpayers. But beware of the tax implications.

If you are thinking of buying a home or a second home with a legacy lump sum, an adviser can help you plan for this.

Family protection

You’ll probably need more room in the future if you have a growing family. You might also need to cope on a single income if one of you decides to stop work for a while when the children are young.

An adviser can help you look at your cash flow, and what you need to earn, save and invest to secure your family’s financial wellbeing in the future. You can find a financial adviser using our search tool.

They will also be able to advise you on life insurance, which many mortgage lenders require before they will give you a loan.

And if it all goes well, you won’t have to move to Vladivostok.


Marianne Curphey

Financial Journalist FREELance

Marianne Curphey writes on investment and personal finance for national magazines, newspapers and websites including BBC Worldwide, the Daily Telegraph, Sunday Telegraph, Times, Guardian and Observer. She is author of Family Resilience, a Centre for the Modern Family report published in June 2012. This report looks at what sustains and nurtures families – what makes individual members of a family more resilient to life’s challenges and crises.