Buying your own home can seem out of reach as a tenant. As well as paying your monthly rent and other bills you also need to be putting money aside each month to save for a deposit which isn’t easy when you factor in all your other monthly costs.
A recent survey showed that for tenants the main reason they choose to rent is due to lack of deposit1 but tenants do remain optimistic and of the 94% who want to buy their own home, 15% expect to do sowithin in the next 12 months.2
Take a look at our top tips to help make the dream of buying your own home a reality.
How much can you borrow?
Firstly, you need to know how much you could borrow and what you can afford. A good way to find out how much you can borrow is to speak to a friendly Reeds Rains financial advisor; they will go through your current situation and your spending habits as well as educating you on the different options available to you. Many people think that it’s a daunting process but just remember that our highly trained financial advisors have a wealth of experience and knowledge and are there to help you.
How good is your credit score?
Work on your credit score and make sure you know what it is. Use websites like Noddle or Experian to check your credit history and remember to pay any store cards and credit cards on time. A good credit score will help you when you come to find a mortgage.
Did you know that registering to vote can also help boost your credit score so make sure you do this.
Could Help to Buy help you?
Do your research – there are lots of schemes out there to help first time buyers. From the Government’s new Help to Buy ISA to various other Help to Buy schemes, find out if you could benefit.
Cut your costs
Unfortunately, more often than not, saving for a deposit requires some sacrifices. For the next 7 days write down everything that you spend your money on – could you do without that morning coffee? Could you walk rather than drive or take the bus? Or maybe you could say goodbye to your daily meal deal and make your own tasty lunches – you will be amazed at what you could save.
Have a clear out
How many items do you have that you don’t use? From clothes to electronics there’s many websites out there for selling unwanted items. This is a great way of having a clear out and earning some extra money to put into your new home fund!
Find a property
Don’t forget to sign up to property alerts to make sure you’re the first to know about any new properties matching your criteria.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Our initial mortgage consultation is free. We will charge a fee between £349 and £699 on application. The amount we will charge is dependent on the amount of research and administration required.