Saving for a deposit to buy your first home is becoming much more difficult, especially as house prices continue to rise out of reach for many. Consider the following ways to make it a little easier to achieve your dream of buying your first home.
Although it may seem like a backwards step, consider moving back home with your parents. As the average cost of renting in the UK has increased to £904 a month, moving back home would release extra cash each month for your deposit. Just two years living with parents could add up to more than £20,000 in the bank.
When saving for a deposit, consider where to save your money very carefully. Rather than stick with a traditional savings account, do some research and look for something which pays a little more. There are a number of tax free ISAs available, including the Help to Buy ISA which offers a bonus from the government towards your deposit.
Work hard at improving your credit score so that you maximise your chances of being approved for a mortgage. As affordability checks and other criteria are much stricter now, your credit rating has to be excellent.
While you are saving for a deposit, keep an eye on the property market, including the types of mortgages available and interest rates. A mortgage advisor has taken a CeMAP training course so that they can provide advice on a range of issues, and will be able to help you to understand the various options available to you.
