We all know it’s important to begin saving for a purchase as soon as possible. A deposit is usually ten per cent of the overall price of the property but this figure can vary. The first step is to decide how much you can afford to borrow. This figure is dependent upon how much you earn and who you intend on living with.
Reduce your bills and save towards the mortgage
There are a number of bills you can re-visit to see if you can reduce outgoings, including your phone and broadband. Shop around for a cheaper deal or switch to a SIM only. Do the same for your energy providers and use comparison sites to gauge the best deals. You can also cut the cost of driving by walking or using a bicycle and take public transport instead. Take a packed lunch to work and don’t be tempted to buy a coffee enroute. Most importantly, always pay your bills on time to avoid additional penalties and protect your credit rating.
Cut your rental outgoings and put the cash aside
Paying rent is a way of squandering your money and at the end of the lease you have nothing to show for it, so you may want to consider moving in with friends or family to help save cash. If that is not a feasible option, look for a flat share to cut living costs, or even take in a lodger which will help ease pressure on the monthly rent payments. Keep your eye on the prize to give yourself extra motivation.
Open a savings account or ISA
Scour the market to find the best savings or ISA deals. Rates are currently higher than in recent times and some good deals can be obtained. Interest can then accrue, offering a good additional sum of cash. According to The Telegraph first-time buyers now need to quadruple their deposits to get a foot on the property ladder as mortgage rates hover around the six or 6.5 per cent rate.
However the housing market remains healthy, and buyers and sellers are still making moves. If you are looking for the best conveyancing solicitors in Guildford or indeed elsewhere, firms such as Sam Conveyancing can offer a cost-effective, friendly, reliable and professional service to homeowners planning on purchasing a new home.
Check the help-to-buy scheme or ask family for help
Family members may be able to offer a loan to cover part of a house purchase, but if you are not in a position to benefit from this, you can apply for a government help-to-buy loan. You must pay a minimum deposit of five per cent of the purchase price and ensure you have a repayment mortgage in place, amounting to at least a quarter of the property price. An equity loan will be made available for you and it will cover from five per cent to 20 percent of the purchase price of a newly-built home. If the property is situated in London, borrowers can enjoy up to 40 per cent. The loan scheme is only available to buyers in England. Similar help to get on the property ladder can be found in Wales and Scotland, but not at present in Northern Ireland.