Most of the time these days, lenders want to know that you’ve been sensible and saved some money before they’re willing to finance your first home. This means that if you want a little place you can call your own, with decor you love and perhaps even a little dog, you need to get saving! This post will help you to take the first steps to saving for a mortgage, so you don’t have to wait very long to move into your first home.
Save 10% of Your Wages
This tip always works if you stick to it religiously. Set up a new bank account to make it harder for you to get hold of the money, and transfer 10% of your total wages each time you get paid. You might need to miss out on a few luxuries through the month, but it’ll be worth it in the long run especially when you see the money piling up. To stay motivated, look at some of the gorgeous houses offered by the estate agents in Downham Market.
Sell Old Stuff on eBay
eBay is the best place you can sell your unwanted items in return for cash. You could sell something simple, like old CD’s, unused clothing (or even used clothing), cosmetics, and household items. You could make hundreds, if not thousands of pounds to add to your mortgage fund!
Don’t Buy Things You Don’t Need
We’re all guilty of this at some point; buying things that we don’t exactly need. Next time you feel like buying something, stop to think whether this is a want or a need. If you need something, go ahead and buy it, however if it’s simply a want and you have other things similar or you can go without, then don’t buy it. You’ll save lots of money! If you still want the product after a month, then you can allow yourself to buy it – but I bet the want would have worn off by then!
Pay off Any Outstanding Debts
You’ll save on interest payments if you pay off any outstanding debts, so although this isn’t a standard savings tip, it will definitely help. You’ll also increase the amount of money you can borrow, and free up cash to put towards mortgage repayments.
Get Another Job on the Side
If you’re serious about saving for this deposit, you could look for extra work if your finances are stretched enough as it is. Working just a few evenings a week could earn you a lot of money to add to your savings pot. Do something you enjoy to make it more bearable; tutoring, making things, freelance writing, babysitting, etc.
Follow the above steps to begin saving for your mortgage, and you should have a large deposit in no time. Remember, this will take time, but providing you’re consistent you will save the amount you need. Some people wonder why they need a mortgage at all, but it’s worth it when years down the line you have a house you can call your own and pass on to your children. Thanks for reading!