Day to day, we speak with plenty of first-time buyers. One of the most satisfying parts of our jobs here at Chambers Financial Services is helping those purchasing their first property onto the housing ladder.
A very common complaint is how long it can take to get on the ladder, and how much can get spent in rent in the meantime. So what if it were possible to get on the ladder sooner?
These are my thoughts on things that can help to get sped up making that first step.
1 – Maximise your savings
One of the biggest factors for securing a mortgage is having a chunk of savings together that can be put towards a deposit. Think about ways that you can maximise the amount of savings you’re making on a monthly basis – look at all your monthly outgoings and see what can be cut back, and what can be cut out completely.
If saving a deposit seems challenging, don’t fret about having a 10% deposit – there are other mortgage options available at a lower initial upfront deposit.
2 – Increase your income
If you’re looking to get that deposit together sooner rather than later, in addition to reducing your monthly spending you can also look at increasing your income. By taking the two-pronged attack, more funds can be put aside each month, thereby hitting your financial goal more quickly.
There are plenty of ways that this can be done now as well. It’s possible to look at part-time jobs, over time or even setting up a side business to secure a little bit of additional income.
3 – Buddy up
If you can’t afford a property on your own (don’t worry, not many people can) then you can look to purchase a property with someone else. For many people, this will be with a partner or a spouse, but there are other ways to purchase a property with others.
Some lenders are now accepting mortgage applications from groups of friends or siblings that want to help each other to climb up the property ladder. Regardless of whether you’re looking to buy with friends, siblings or a partner – take appropriate advice before moving forward.
4 – Look at different areas
Now, this is a tricky one because some people are pretty tied to an area by work or family commitments. However, it’s no secret that there are some parts of the country that are much more affordable than others.
Beyond thinking about other parts of the country that are more affordable, there are always local pockets – areas in a county, or even in a town, that are not as expensive as others. It’s worth exploring different options, looking at affordability before getting your heart set on a particular property.
5 – Explore your mortgage options
There is a myriad of mortgage options open to you, don’t think that just because you haven’t got a big chunk of deposit that home ownership is closed off to you. A smaller deposit could mean having a higher interest rate or having to pay more over a 30-35 year term.
Ultimately, having a friendly team of professionals on your side to walk you through the options and ensure you’re on the right track is invaluable.
Contact the team at Chambers Financial Services today on 01268 744 333 to learn how we can help you out.