Best Ways to Save up for a Mortgage Deposit


If you are thinking of taking out a mortgage then you will need to think about the fact that you will normally need a deposit. This will be a significant sum of money, potentially 5-10% of the value of the mortgage and this means that you will need to work hard to get it. There are lots of different techniques for saving but when you need to save a big chunk like this, you will really need to concentrate hard and make sure that you are saving up properly and making sure that you are focussed on it. There are some things that you can do which should help you.

Set up an Account

It is a good idea to set up a savings account to put the money into. Then you will be able to keep it separate from all of your other money and you will be able to watch it grow and know that you should not spend it unless you really have to. You should compare the different savings accounts so that you find one that pays a decent amount of interest as well because that will add to the money that you have and will help it to grow. Even if it is just a small amount, it is free money so whey not take advantage of it?

Save Regularly

It is a good idea to set up a transfer to take place each month after you are paid to put some money into that savings account. By doing this it means that you will remember that you need to make the payments and you will be sure to make them. You will need to set the amount at a realistic level so that you will still be able to afford all of the things that you have to buy as well. However, you will also need to think about saving a significant amount so that you are able to save up quickly enough. If you only save a tiny amount it could be a very long time before you will be able to buy a home. Therefore, it can also be worth calculating how much you might want to save each month in order to buy a house in the timescale that you are planning. You may have to change some things that you are doing so that you will be able to afford to do this.

Cut Down Spending

It is a good idea to think about the amount of money that you are spending and whether you cut down in some areas. There are two ways that you can approach this. You can start by looking for cheaper items, so still buying everything that you normally buy, but paying less for them. So, comparing prices to see whether you are paying more than necessary is worthwhile. It is a good idea to think about everything you pay for, so even insurance, utilities and things like this as well as the items that you buy in shops. You will soon get used to comparing prices on things when you are shopping and you could find that you will start to spend a lot less. You can also reduce the amount of things that you are buying as well. If you think carefully about everything you are buying you may find that you will buy less. It is worth asking yourself whether you really need the items that you are buying and this should help you to cut down on the amount. It can feel hard doing this but stay focussed on the reason why and that you will soon be living in a lovely house that you are buying as a result.

Continue Reading

Where to Find the Best Mortgages


There are lots of mortgages available for us to take out and it can be difficult to know where to find the very best one. It is made even harder by the fact hat there is not just one simple answer for this. This is because we all have different requirements when we are looking for a mortgage and this means that there is not just one specific mortgage that will work for all of us. Therefore, we should think about what we are looking for in a mortgage to start with. The following things might be a good starting point –

  • Cost – most of us will be concerned about the cost of a mortgage. We will not want to pay more than necessary, but we also will want to make sure that we are not getting a poor deal because we are not paying enough. Therefore, we will probably want to look for a mortgage which offers us good value for money.
  • Type of Mortgage – it is important to think about whether you want a fixed rate or variable rate mortgage. Fixed rate mortgages will tie you in for a period of time but you will know what rate you will be paying, it will not change. Variable rates could go up and you will have to be sure you can afford that. You also nee dto decide between repayment, where you repay some each month or interest only, where you only repay the interest and invest money to repay the balance at the end of the term.
  • Repayments – it is really important to make sure that we are able to afford the repayments that we have to make. It is a good idea to therefore find out exactly how much money we need to repay each month from the lender. Then we will be able to work out whether we will be able to afford it. We will need to look back at previous bank statements in order to see how much we normally pay out each month as well to check how much we get paid and that should allow us to calculate whether we can afford the mortgage repayments. It is worth thinking about the fact that there is also a chance that the repayments might go up. If the Bank of England put up the base rate or if your lenders sees fit, they may increase what you have to pay in interest if you are on a variable rate and so you will need to allow for this in your calculations.
  • Customer service – it can be nice if you know that the lender will provide a good level of customer service. When you have a query or question, you need to make sure that you will get a good answer to it. You want to make sure that you can get through easily and that you will get a fast and accurate response. You can find this out before you apply by getting in touch with the customer service department yourself.
  • Lenders reputation – some people will also be interested in finding out more about the lender before taking out a mortgage with them. They might want to have a look at their history, read some reviews, ask people about their experiences or perhaps even use a lender that they have used before. It is a good idea to think about whether these things are important to you or whether anything else will be too.

Once you have established what you are looking for then you will be in position to find the mortgage which will be the best for you as you can see how well they match up to your requirements.

Continue Reading