Taking your first step onto the property ladder can be an exciting, but daunting time. Buying your first home can be a terrifying task, with mortgage advisors, banks and loans flooding your life for the first time.
However, with a good few saving tips, a career set to propel you into the future and the right knowledge, your journey into buying your first home can be a lot easier than you think.
Am I a First-Time Buyer?
A first-time buyer is classed as an individual that’s about to obtain one main residence, without having bought another property in the UK or abroad. They must be able to put down a hefty deposit and be able to repay the loan they have taken out for the property, over a set amount of years.
Make Sure You Can Afford the Deposit
The deposit will be 5% to 20% of the overall property price, but the more you can save, the wider your access will be to cheaper mortgages.
The deposit is the first amount of money you’ll spend on your new home and is certainly one of the most important. If the sum of money you can put down as a deposit on the house is large, there will be better deals for you at lower interests. Therefore, it’s better to start saving for the deposit, rather than the entirety of a mortgage.
Learn to Save Right
To save money is a challenge, so you need to find the right way to save that works for you. There are lots of options that can aid you in saving money, like Help to Buy ISAs. These will actually help you earn interest on your savings and the Government will you give you a 25% bonus when you completely purchase the property you’re trying to buy.
There are also saving apps which can help you work out how much you’ve saved so far and how long you’ve got to go until you achieve your goal. These can be extremely useful and can save you a lot of time that you’d alternatively spend at the bank or sitting down trying to calculate.
There are plenty of options to choose from when it comes to savings and spending tracking apps. One we quite like is MoneyHub.
And then there’s us…obviously.
Get Others Involved
Instead of birthday presents, Christmas cards or anniversary gifts, ask your friends and family to donate to your house saving fund instead.
The Offspring savings app, allows for a simple setup, the creation of goals and milestones, the ability to invite others to help you along the journey and the chance to say thank you to those that have helped you.
Your family might be far happier contributing to your step onto the property ladder than buying you new clothes or perfume, and you are likely to achieve your target more quickly.
There are also other costs in the house buying process that you will have to consider, such as solicitor fees, survey costs, buildings insurance, removal costs, the furnishings and decorating and Stamp Duty.
Buying your first home will require a lot of saving and it’s important you start as early as possible if you want to climb the property ladder all the way to the top.