Top tips on how to save for a mortgage
Welcome! Today we will be going over some top tips on how to save up for a mortgage or increase your chances of getting one and finally getting onto that property ladder!
Initially the best thing that you can do to increase your chances of getting a property and actually getting onto that ladder is to gather as much deposit as you can. You can try a variety of options to do this, the main and best way will probably be whilst you are still living at home with your parents, to try and put as much aside as possible as you will be saving on bills and rent. If you are not living with them and are renting a property, it may be worth considering moving into a place where the rent is cheaper and save the rest aside towards the deposit. Just be mindful of what you spend your money on and making just some small cutbacks will all add up…think to yourself, do I really need that coffee from the café, I could take my own flask of coffee and save that money daily instead.
If they are feeling generous, they may even add to your savings by giving you a lump sum to help you along onto the property ladder, good old bank of Mum and Dad! The more deposit you can save, the more money you will be putting into your property and hopefully will also mean not requiring such a large mortgage. With any luck this will just be a gift and won’t have to pay it back, but you could also set out a monthly plan of payback with them which you will need to then obviously take into consideration when looking at mortgage repayments. You’ll need to find out how much you can borrow on your mortgage with an online mortgage calculator such as this one from Mortgage Arrangers. This particular tool is aimed towards those looking for a mortgage in the UK.
Another way to raise some cash towards a deposit is to sell things you no longer want or need on marketplaces such as eBay or Facebook. You will be surprised how many people will want what you no longer see as useful. Clothing, household items, books, the list is endless and as they say every little helps!
Some savings accounts might be worth looking into, although the interest rates are quite low at the moment and the base rate is currently 0.75%, over the years it may take you to save up for a sufficient deposit, it may be worth looking into some long term savings accounts. Will be worth your while having a look around for a good deal, doesn’t even necessarily have to be a savings account. Maybe a comparison site would be the best place for this and compare which would suit you best.
Then the next thing to do then is to maybe find a mortgage broker. This would be a good option for you to go over and discuss all the different types of mortgages available to you and the best one that would suit you in relation to how much you can pay back a month, whether it be fixed or variable rate, repayment or interest only plus other options such as tracker mortgages etc.
