Tips on how renters can get on the property ladder

BudgetRenting and saving for a deposit at the same time can seem difficult and trying to do both can be frustrating. But with some planning and budgeting for what you spend, buying a home could be closer than you think.When working out your budg ...

Budget

Renting and saving for a deposit at the same time can seem difficult and trying to do both can be frustrating. But with some planning and budgeting for what you spend, buying a home could be closer than you think.

When working out your budget, you’ll need to think about additional costs you’ll have when you buy your first home. As well as a deposit and your mortgage payments, you’ll have things like stamp duty, surveyor, and conveyancing fees. So, keep these things in mind when budgeting.

Start by working out what’s essential and the things you could actually live without. There are lots of things you can do to reduce your outgoings. Perhaps knock the takeaways on the head for a while, cut back on the retail therapy and those expensive nights out. There are also online tools that can help your budget for those future goals.

Build your credit score

A mortgage lender will look at your credit score when you apply for a mortgage. Making sure you are on the electoral register and paying your bills on time are good ways to improve your score — and not all renters are aware that paying your rent on time can also help to build your credit score.

Deposit

Buying your first home is very exciting but before starting your property search you’ll want to save a deposit. Think of it as an additional bill and put it into a savings account each month, this way you’ll be less likely to dip into it. You’ll see it will soon start to add up.

Mortgage deal

With so much mortgage advice and so many deals available, it’s a good idea to explore what type of mortgage will suit you. What you can spend on a property will be determined by what you earn, so remember this while searching for your first home.

You’ll also need to be able to answer certain questions when you start your mortgage research.

The value of the home you want to buy

What you have in savings

The length of the mortgage term

Your earnings

What other monthly outgoings you have

These questions will allow you to be realistic about what you can afford. It’s a massive financial commitment, so knowing what you can afford is crucial.

Ask a mortgage adviser

Now that your research is done, you know what you can afford, and your deposit is saved. You’ll need to speak to a mortgage adviser. They will look at your spending and income and help you clarify your budget and what you are able to borrow.

It can be quite stressful when buying your first home, so it’s worth speaking to a mortgage adviser so they can deal with the stress of finding a mortgage. They will be able to compare the best mortgage deals and find you the one that’s right for you.

Not sure where to find a mortgage advisor? Ask your friends if they can recommend ones they have used, or you may try looking online for one that suits you perfectly. They will have the expert knowledge and experience to deal with the lender on your behalf, which will save you a lot of time and stress.

If you are looking to buy your first home and need advice, our expert team will be happy to assist.

Get in touch with us here.