Owning your own home is a dream. One that is actually in reach for many of us. It can be hard to change our mindset though, to start to save for a house. It’s all about priorities and in this post we’re going to look at how to figure out your finances to save for a house of your very own.
Know How Much You Need To Save
Look at the amount of money that houses where you want to buy, are selling for. You’re likely going to need at least 10% of the cost of the property, as a deposit. That means if the house is £250,000, you’ll need to save £25k, minimum, in your save for a house fund. If you’re able to save that little bit more, you’ll be able to get better mortgage deals. If you have £26,000 as a deposit for a £250k house, you’d be better trying to save another £1,500 to take you to the 11% bracket. Each percentage you put in yourself is a percentage you aren’t borrowing. This will, in turn, help you get better mortgage deals.
Prioritise Your House Deposit Fund
Now you know how much you need for your deposit, you need to start saving that money. This might be stopping your gym membership, cutting back on takeaways or going to the pub. Staying in is your new going out, after all, when you move into your new house, your own home, you’ll want to enjoy being there! Get to know your Netflix! When you want to save for a house, now is a time to make a change. You’ll be surprised at just how quickly you can build up a house deposit when you prioritise.
Shop Around For Mortgages
Depending on your situation, you might be faced with a whole lot of different mortgage deals. If you are struggling to get a mortgage because of past financial history or your employment status, you might be better working with a mortgage broker who has access to more mortgages than are available on the high street. Certain mortgage brokers work with niche lenders so even if you don’t think you’ll get a deal, there might be one for you. You need to ensure the deal is right. Tally up the figures, ensure you are happy with the term commitment and the monthly repayments. Remember, that first month will fly by when you move in and you’ll soon start having to meet those repayments!
Have you thought about purchasing a Derelict Property?
Take Other Things Into Consideration
When you’re planning on where you want to buy a property, you need to think about more than just how much it costs. Will the location mean that you spend more money on commuting to the office? That in turn might mean that you spend less time actually at home, if your commute is further. Will you have to spend more time taking the kids to their schools, travelling to see family or stuck on a notoriously busy ring road nearby? When you save for a house, think about the houses you’re looking at as a complete package, not just some bricks and mortar. You’ll be making sure your living room has Feng Shui in no time!
Be smart, save well and you’ll be in your own home before you know it.
