What can you do to get a mortgage for yourself?
Well, I would like to give you some top tips on how I think this can be achieved with the best results for all.
Deposit
The first and foremost most important thing for anyone trying to get a mortgage is to try and collect as much deposit you can before you even try and look for a mortgage anywhere. This will give you the benefit of obviously, the more deposit you have to put forward into a property, the less mortgage you will require and therefore, your monthly repayments will be less, which is better for everyone.
Save
There are a number of ways in which you can try and save for a deposit, but the widest used option and probably the best by far is to live with your parents and then you save all the money you would be paying on rent elsewhere towards your deposit. Your parents may ask you to contribute to some bills, but it won’t be anywhere near as much as if you were paying rent somewhere with bills on top as well. If you cannot use this as an option and you have to be living elsewhere, it may be worth having a look round the market and see if there is something else you can find which is suitable for you but cheaper and then save the amount you will save on rent that way. It may even be worth looking a bit further out, next city, town or village as you may find just changing location by 5-10 minutes can change the price of a rental property immensely.
Deposit sorted
Once you have your deposit sorted and you know that there is not really much more you can raise, congratulate yourself as you are about to make an excellent investment into your future with this property and will be getting your foot onto that good old property ladder.
Deposit sorted
Buying a property is a great investment for anyone, young or old but especially the young of today for whom the property ladder has become increasingly harder to get onto. You cannot go wrong with investing it into property, because should the market even crash, you can just leave it and one day your property should pay you back and then some, able for you to move on to your next property.
Cutbacks
Make some small cutbacks here and there, things that you would not really miss, instead of going out to the cinema, try some movies on Netflix or equivalent. Instead of expensive take aways, why not to go to the supermarket and see if they have the equivalent and will be at a fraction of the price. Small little cutbacks like that really can add up and you can keep those savings aside for your deposit.
Lump sum
Another option to boost up your deposit is a lump sum that maybe your parents or grandparents may give you towards your property, hence hopefully reducing your mortgage even further by boosting your deposit on top of what you would have already saved.
GIFT
Hopefully this will be a gift to you and you will not have to pay it back, however if you do need to, you could maybe set up a monthly repayment plan with them and remember to add that on top of your monthly mortgage repayments when adding up all your sums and what you are able to afford at the end of the month. You could raise capital for your deposit by selling unwanted items on market place websites and apps.
Consult
You then need to consult with a mortgage broker who will look through all your finances and ascertain which deal and rates they think are best for you. They should give you a few options to look at, such as fixed or variable rate, repayment or interest only mortgages etc. It is often best to take all this information home to get a good idea of exactly which deal is the best for you and what would suit you best according to what you can comfortably pay back monthly. Remember to take into consideration all the other costs you will have outgoing per month. Look at all the rates the broker will show you and make available to you for your information. Go over all the options very carefully, taking into consideration that interest only payments a month may be cheaper, but you will take longer to actually pay off the mortgage and all other factors when looking through all the information. Do not hesitate to ask the mortgage broker any questions should you be stuck on anything you do not understand. That is what they are there for and their job to clarify all the information for you. They will also take a lot of information from you as well, regarding your current employment status, your incomings, your outgoings, your deposit amount, how you will afford the monthly repayments etc. Be ready to have all this information to hand when you go to see the broker as well as current payslips, bills with your current address on and such like.
