Many people want to step a foot in the property ladder, but a lot of people fail at getting a mortgage. There are many reasons why this happens, and today we’re going to give you 5 tips to help you tackle this.
Tip 1. Save More Deposit
Saving up enough deposit will make it easier to get a mortgage for the property you’d like to buy. You need at least 5% deposit of the property price to be given a mortgage. The higher your deposit, the better the deal you’re going to get from your lender.
Tip 2. Consider opening a Lifetime ISA (LISA)
LISA is aimed at those saving for their first home or their retirement, lifetime Isa offer a 25% government top-up on your savings. You can claim the bonus on up to £4,000 of your saving per year, meaning you could get up to £1,000 a year from the government to put towards your deposit. You’ll need to be aged between 18 and 39 at the time of opening the account, and the property you end up buying must cost £450,000 or less.
Tip 3. Cut back on bills & spendings
Re-evaluate your bills and see if you can save money on your bills by switching energy provider. You should review your regular spending and see if there are any areas that you could improve upon.
Tip 4. Consider using a Credit Card
If you trust yourself to pay off the balance in full each month, consider applying for a cashback credit card. These will pay you a percentage of what you spend, sometimes in the form of credits on your bill. Provided you use them responsibly, credit cards also offer the added benefit of helping to build your credit score, which will be vital when the time comes for you to apply for a mortgage.
Tip 5. Talk to a Mortgage Broker
Once you’ve done some basic homework, it’s time to contact a mortgage broker. This is someone who can assess your financial situation, recommend deals and lenders that will work for you, and then apply on your behalf. Using a broker can save you considerable amounts of stress and time, and also gives you access to more deals than if you were applying on your own.
Make sure you choose a person or company that’s ‘whole-of-market’, as this means they’ll be able to compare every deal on the market rather than just a select few.
To get in touch with our Mortgage Adviser for fee-free advice, please call us on 01252 416516 or email us at [email protected]. Alternatively, you can also reach out to us via our Facebook, Instagram & Twitter.
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Your home/property may be repossessed if you do not keep up repayments on your mortgage.
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