Saving Up a Mortgage Deposit
If you’re trying to save up for the mortgage deposit on your first house, then it might feel like the odds are stacked against you, you may be finding it hard to save, or have poor credit (debt advice Scotland can help with this). Speak to pretty much anyone, and they’ll tell you how hard it is for people to get onto the housing ladder nowadays- especially since the average cost of a deposit keeps growing and growing. While there is a grain of truth to all of this naysaying, it’s actually easier than you might expect to save up for a mortgage deposit. So long as you have the discipline to stick to a budget, and throw in a few more tricks to save as much as possible, you could save up enough for your deposit within just a year or two. While it does mean less money in the short term, you’ll save a fortune on rent in the long run- so it certainly pays off to get on that first rung of the ladder as early as possible. Read on, and we’ll talk you through some handy tips on how you can make it a whole lot easier to save up your deposit.
Boost Your Credit Score
Before you even think about applying for a mortgage, you’ll want to make sure that your credit score isn’t going to get in the way of a good rate. If you go into things with a poor credit score, then you might even get denied a mortgage altogether- which will mean all of your saving went to waste. What’s more, having a lot of debts to keep up with can make it harder to save up for your deposit, since it will mean you have less disposable income to put in your savings account. If you are in this position, then you may want to consider speaking to a professional financial advisor to help you manage your debts, and boost your credit score to boot. That way, you’ll have an easier job of saving up- and could even cut the amount you need in the first place!
Change Your Attitude to Saving
Whether it’s saving up for a mortgage deposit or going on a diet, we all know how easy it is to give in with a personal commitment when things get tough. You might find it harder than you thought and throw in the towel within a week, or fatigue might set in after a while and you forget why you’re even saving in the first place. However, if you change your attitude to saving, you should find that things get a whole lot easier. Instead of treating saving as a chore, start to see the positive in it. Don’t lose sight of why you’re putting all that money away- it might help if you keep looking at properties so you know what reward awaits you once you’ve got your deposit in order. It’s also important not to get in the mindset where you don’t allow yourself to spend anything on having fun. Everyone needs a break every now and again, so you should still set a bit aside for yourself so that you don’t end up going stir crazy with your saving.
Don’t Be Afraid to Shop Around
Of course, when saving up for a mortgage, you’ll want to identify the areas where you could save the most money- and for many people, that will be their utility bills. With so many price comparison sites out there, you’re probably already aware that you could save money if you switch provider. A lot of consumers see this process as too much of a hassle, but it could help you save hundreds a year- and in fact, we’ve already written another blog post about this very topic. The same thing goes for insurance, as it’s highly likely that there’s a better deal out there if you’re willing to do your research. Finally- and perhaps most importantly in this case- you shouldn’t just automatically take out a mortgage with your current bank. They will be very keen for you to do so, and make out like they are doing you a favour by offering you a mortgage, but don’t just take their word for it. Look at what else is available, and you won’t just be saving on your mortgage deposit- you’ll stand to save thousands across the whole timespan of your mortgage.
