Our Top Tips for First-Time Buyers
Sometimes, saving for a deposit can feel like an uphill struggle. Living costs and property prices are often working against those trying to put together a large enough down payment – but don’t give up! We’re an experienced provider of mortgage advice, and our saving tips could put you on the path to finally being able to afford your first home. Plus, we’ll explain how working with us can make the whole process smoother and less daunting.
Set a Realistic Savings Goal
Before you start saving, determine how much deposit you’ll need. Most lenders require at least 5-10% of the property’s value for a deposit. However, it’s a good idea to aim for a larger deposit if that is possible for you. A higher deposit could give you access to better mortgage rates, lowering your monthly repayments. By saving more now, you could enjoy more money in your pocket in the long run.
Create a Budget and Stick to It
Budgeting is key if you are going to save effectively. Tracking your spending is a good place to start, as you will be able to identify any non-essential costs and cut down on those. There are some great apps out there that can help you with this. You should also set up a separate savings account and set up transfers to this every payday to avoid spending that money elsewhere! Look for high-interest savings accounts or ISAs that can boost your deposit fund over time.
Plan for Hidden Costs
Many first-time buyers overlook the additional costs associated with buying a home. First-time buyers in England are exempt from stamp duty on properties up to £425,000 (in England), but homes priced above this will incur a charge. You should also bear in mind things like solicitors’ fees, surveys, and even the cost of a removal van when the big day comes. Planning for these expenses in advance will prevent unwelcome surprises down the line.
Work with a Mortgage Broker
Saving for a deposit is just the first step, and understanding your mortgage options is equally important. We’re here to help you every step of the way during your home-buying journey, and when you work with us you can expect the following:
- We will assess your financial situation and recommend the best mortgage products for your needs.
- We will handle much of the paperwork for you, reducing stress and saving you time.
- We will ensure you understand how much you can realistically borrow, helping you avoid overstretching your finances.
Consider Earning Additional Income
Sometimes saving feels like it can take forever, but by thinking beyond your day job you can speed up the process. Selling unwanted items online is a great way of earning some extra cash – and will help you to streamline your possessions before you more! Some people also take on freelance work alongside their 9-5, although we appreciate that not everyone has time for this. Regardless of how much extra income you are bringing in, it’s a great idea to put it straight into your deposit fund.
Talk to Us
To find out more about buying your first home, please get in touch at A Little Mortgage Advice with our friendly team today.
