Buying your first house is a considerable commitment, and it’s likely one of the biggest that most people will make in their lifetime. Because of that, there’s pressure to get it right. For those unable to buy a property outright and don’t wish to persist with renting, acquiring a mortgage can be the catalyst in becoming a homeowner. Currently, there are various packages to choose from, including discount, fixed-rate, tracker, and many other mortgage types. Before you can make that decision, however, there’s plenty to ponder. So, here are several tips that will help you to acquire a mortgage.
The Best Ways to Save Money for a Deposit
According to data from Finder, the average British person has £6,757 saved in their account, while a third of British people have less than £600 in savings. Of course, it’s nice to treat yourself as and when payday comes around, but for those longing to buy their own place, saving must take priority over spending. However, that’s often easier said than done, as the amount of money available to put aside depends on circumstance.
That said, irrespective of your current living arrangements, there are various changes to cut costs in your efforts to obtain a deposit. First and foremost, reducing your bills where possible will result in significant monthly savings. As per Which, this is achievable by considering alternative energy bill tariffs, as well as mobile and broadband packages. Moreover, be mindful of your monthly subscriptions, as you may find that you can do without Netflix, Spotify, or a gym membership.
Not only that, but it’s also worth looking into opening a Lifetime ISA. After the Help to Buy ISA scheme ended for new accounts in November 2019, the lifetime alternative somewhat took its place. This enables aspiring homeowners to receive a 25 per cent government bonus on their savings – up to a maximum of £1,000 per year – until they’re 50.
Believe It or Not, Technology Can Help
Upon raising the money for a deposit, this next task is overcoming the complicated world of mortgages. On the topic of deposits, the total saved will, in future, directly impact the granted mortgage rate that you receive. Although it can be overwhelming, the rise of digitalisation has aided in reducing the stress of buying a house. As such, why not peruse some comparison sites?
At Trussle, a six-year-old mortgage comparison site, aspiring property owners can compare 12,00 different mortgage packages from 90 lenders. Their online tool allows users to modify their search filters based on property value, borrow amount, initial period, rate type, and repayment length. Through inputting the necessary data, Trussle forms a list of suitable mortgage deals with the cheapest monthly payment being the first of the results. For those unfamiliar with the process, the platform aids in finding the best package, and informing on the components involved, such as mortgage rates and types, interest, and repayments.
Make Your Dream a Reality and Push for Your First Home
Ultimately, it’s no secret that buying a house is a stressful task. However, saving and learning about the ins and outs of mortgages is worth the hassle. Becoming a homeowner is a lifelong commitment, but it does open the door to a whole host of future opportunities. Once you’re on the property ladder, the potential to climb is there, and the importance of that can’t be understated.