Did you know that the “Bank of Mum and Dad” is now the UK’s 9th biggest lender?! It’s testimony to how difficult it is for people to get their foot on the property ladder in 2017. So we’re here with some hints and tips to help you save and purchase your first property. Whether you’re currently renting and want a place of your own; or you’re still at home and desperate for your own space – here are some ideas to help you get past the idea that it’s ‘impossible’ to buy a house, and start making a real plan.
- What do I need to save?
Typically, to get a mortgage you need a deposit in place of at least 5% of the value of the property you want to buy. BUT there are only a few mortgage deals on the market for a 5% deposit. If you manage to save more, you’ll be offered a wider range of better deals – so the more you can save the better.
Other things to consider are: solicitor’s fees, Lands and Buildings Transaction Tax (LBTT – used to be called stamp duty) and any mortgage arrangement fees. There’s also the cost of a removal firm to consider. So get a spreadsheet and start planning!
- How do I start saving?
The easiest way to save, is to stop spending! Or at least cut it back. Track all of your spending for a month (or even two weeks). Be completely honest about every penny and you’ll start to see where you can cut back. Pack your own lunch for work instead of buying one; car share with a colleague and half your petrol costs; and make a coffee before you leave the house rather than buying one. Aim to save £10 every week day on these small spends and you’ll have pocketed £200 a month without even trying!
- Can I get help?
Yes – while the government backed saving schemes are changing a lot right now, there are still plenty of options out there to help you buy your first home. Speak to an independent financial advisor and they should be able to point you in the right direction, or for the most up to date advice, visit the Gov UK website.
If you’re looking to buy your first home, get in touch with Benson’s independent mortgage advisors for local knowledge and honest advice.