Buying your first home is exciting…
The British enthusiasm for buying property shows no sign of waning but getting your foot on the property ladder continues to get more difficult as house prices rise inexorably. Research suggests that first time buyers have to save for eight years to achieve their deposit and of course all the while, house prices continue to rise. But despite all the obstacles, for most of us, property remains the only way in which we are going to make a significant amount of money and buying your first home can feel such an achievement. So, what’s to be done? There are alternatives to living on baked beans indefinitely, here are some things you might try.
Save for the biggest deposit you can
It goes without saying when buying your first home that the bigger your deposit, the lower your monthly mortgage payments. You’ll stand a much better chance of being approved for a mortgage and the deal that you are offered will be much more attractive. So, set yourself a target and work out how much you need to save and how long for and then as soon as you are paid siphon off the sum you want to save before you have a chance to spend it. Try and save what’s left at the end of the month and you’ll never save anything. Take a good look at your lifestyle: you love the freedom your car gives you, but could you do without it? If you can you’ve just saved a significant amount of money. Can you generate a second income? Just a little extra money a month can make a difference.
Investigate help to buy schemes
There are several schemes available, designed to help first time buyers get started. A ‘Help to buy equity loan’ can generate 20% of funding toward your purchase and a ‘Help to buy ISA’ and ‘Lifetime ISA’ are savings accounts which offer a 25% bonus from the government.
Don’t waste money on the wrong insurance policies
Don’t just accept the home insurance that your mortgage provider offers you, you can usually find cheaper deals if you compare policies online. You could also increase your excess in order to lower your premium, which will cost you less in the long run if you don’t make a claim.
There’s reason why people use removals firms and that reason is convenience. Do not underestimate the difficulty of moving yourself, but if you are physically fit and you’ve got a few friends who can help, it is certainly a way to save thousands of pounds. Find out where you can get cardboard boxes for free and start your packing well in advance. Think every step through and make sure that the furniture that you are taking will fit in your new home. Moving is a good opportunity to review your possessions and maybe even raise some cash by selling some of them off.
Your new home doesn’t have to be fitted out with all new furniture and appliances.
When buying your first home, you suddenly realise that there are so many things to buy that you hadn’t even thought of. Don’t add to your debt by buying everything on credit. Go to sites like preloved and see what you can find second hand. You’ve waited long enough to buy your first home, you can wait a little longer to buy that fridge of your dreams.