7 Tips to Help You Save For a Mortgage

| January 1, 2016 | 0 Comments

Owning a home is on most people’s to-do list. There is a lot of security that comes with it. You also know that you are investing your money in a property that is yours, rather than someone else’s. That can be one of the most frustrating parts about renting. If you aren’t yet on the property ladder, it can be tricky to put aside enough cash for a deposit. Here are a few tips that will help you to put some money aside and help you save for a mortgage.

Prioritise

It can certainly be easier said than done but you must think about what is important. If you want to be able to own a home, you will need to make a few sacrifices to get there. Holidays are great but perhaps you go without for a few years? You could choose cheaper options too such as staycations. There may be money aside each month for hobbies and interests. The first things to go into a savings account should be the amount you would like to set aside to save, though.

Needs & Wants

It can be tricky when saving money, to decide what is a need and what is a want. But, if you are serious about owning a home and getting a mortgage, it is important to know the difference. This is especially relevant for birthdays and Christmas. If you can’t spare the cash to buy a gift for everyone, then don’t. Dream of your new home instead. Or you could visit somewhere like https://PersonalMoneyStore.com if you need a little extra upfront.

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Open Accounts for The Whole Family

A savings account for yourself is a must. If you have children, though, it could be worth your while opening an account for them, or in their name, too. Each child can earn up to £10,000 tax-free in savings. They don’t use up their allowance like we adults do. Shop around to make sure you get the best interest rate.

Be Frugal

There are a lot of things that can be done cheaper than you currently are doing. They might not save you thousands and thousands, but after a while, the savings will add up. Think about your food shopping. You can use comparison sites to see what your shopping list would cost at different stores. You can see the offers too. Comparison sites work well for other things like insurance too. Shopping around is key if you are looking to save.

Cleaning and household products can be made for a lot cheaper than buying. And as much as we don’t want to, we all have to clean our homes. There are lots of tutorials online to make your kitchen and floor cleaners. You can even make your washing powders too. It may take up a little time, but it will save money.

Register to Vote

This is a little-known fact, but if you aren’t registered on the electoral roll, you won’t be able to get a mortgage. Even if your credit score is pretty perfect. Banks and building societies use the electoral roll information in checks to confirm your identity. They need to know that you are who you say you are, and you live where you say you live.

Are You a Single Parent?

This is an important point to note if you are now a single parent. If you had joint accounts or cards with an ex-partner, their credit score could affect yours. To avoid this, make sure that you write to credit agencies to explain the situation and ask them for a form that you can complete and send back. It sounds bad, but it is true.

Use Selling Sites

A good thing to do, to save a little bit of money, is to have a bit of a clear out. Are there old clothes, books or toys that are no longer used in your home. There are lots of selling sites out there, including ones that are free of charge. One thing to make it a worthwhile exercise is to put the money into savings, rather than spend it on anything else.

The fun bit comes when you are finally able to look at different mortgages. It was said earlier, but make sure to shop around. There are completely varying rates so take your time to look around and see what suits your situation the best. It is also a good idea to get a few different mortgages to compare. Good luck with your saving. It is a worthwhile investment.

Category: Home Loan

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