How to save for your first mortgage

When it comes to getting your first mortgage, the bigger the deposit you have, the more likely you’ll be able to get a better deal. On average, you need around 5-10% of the value of the property. But saving this money can be easier said than done. There are a few ways you can boost your savings though and get your finances in check before stepping on the property ladder. 

Set up a monthly savings pot

Manually keeping some money aside every month can be hard which is why a monthly standing order into a savings account can help. Think about how much you need to save for your first mortgage, then figure out how long you have and you’ll know roughly how much you need to put away each month. It can be a good idea to start off small as there’s no point getting into debt just because you’re trying to save. 

Start now

Saving thousands of pounds isn’t going to happen overnight, and even if you don’t envision buying a home in the next few years, saving is only going to help. What’s more, saving £100 a month will soon mount up and, even if you don’t end up buying, you’ve got a pot of savings to be used however you like. 

Get help from others

Family members may be willing to lend or even give you some money to go towards your deposit. Or, perhaps they’d allow you to move into their house, so you can save money on rent and instead put it towards your new home. There are also plenty of government schemes to help first-time buyers to get on the ladder including Shared Ownership which allows you to buy a portion of the property, therefore requiring a smaller deposit and mortgage.

Be a savvy spender

It goes without saying that the easiest way to increase your savings is to reduce your spending. To do this though, you need to know exactly what you’re spending every month. Once you have this information, go through it in detail. Could you go without your morning takeaway coffee? Would moving to a more affordable area save you money on rent? Will you really miss that night out when you’re in your brand new home? Cutting back in certain areas of your life can make your new future not so far away.

If you’re currently trying to save for your first mortgage or are considering starting the journey, our team would be delighted to help. We’ve supported hundreds of first-time buyers to find their dream home and we also have a recommended mortgage advisor who can help with your finances. So, why not drop us a message or pop into our office and take the first step towards being a homeowner?

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