Getting on the property ladder for the first time can be a difficult task, especially trying to save for a mortgage. The average person in the UK doesn't buy their own house until they are 30 now unless they have parental help and this is usually around 25. You may be able to pay the monthly repayments however getting the deposit together seems to be a hurdle that many first time buyers can't seem to climb over.
Typically buyers need a 15% deposit of a house value in order to secure a mortgage. You may be lucky and only need 10%. Which means saving is vital but how can you do this whilst renting? Here are just a few ways that you can save for a mortgage whilst renting.
1. If living with parents you should be able to save up quiet a lot especially as your rent and bills will more than likely be far cheaper than if you were living on your own. Save any extra money you have left over each month.
2. Get a lodger - If you are living on your own and have the extra space get a room mate and share the bills. This will leave you will half of the original amount of the bills to go in savings! The easiest way to do this is by speaking to friends and family or if your in a relationship perhaps having your partner move in and split the bills.
3. Downsize - If you can manage living in a smaller home for a short period of time, perhaps moving to a smaller place in a cheaper area could bring you even closer to owning your own house. Downsizing also means you could save on council tax, heating and other household bills leaving you with more money for your deposit fund. Its definitely worth thinking about!
4. As a first time buyer you may be able to take advantage of one of the government housing schemes to get onto the property ladder. There are many different schemes such as the 'First Buy' and 'New Buy' which loan first time buyers up to 20% of the price of a new home, meaning you only need to find a 5% deposit before you can buy. The majority of these loans are only available on new properties so it does limit your choice, however you wont have to pay anything back until you sell your home.
5. By reducing unnecessary spending and cutting back on non-essentials and luxuries you can save a lot of money. Why not take lunch into work instead of buying it there costing you around £5 a day, cut back on those morning coffees on the way to work and make one when you get there instead. Cutting back on the takeaways and nights out could also see you land your dream home much sooner than you thought.
Also don't forget if you ever get into a dispute over your mortgage you can always seek advice from a professional negligence claims against solicitors who will assist you with mortgage mis-selling or poor advice.
Are you saving for a mortgage do you have any tips to offer?
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