You long to be able to get hold of some bricks and mortar that you can call your own. The years you’ve spent lining somebody else’s pockets in seemingly endless rent payments has to stop. Something’s got to give. You’re ready to move from seasoned renter to first time buyer. You just need the deposit to do it, and that’s the tricky part. Saving up thousands of pounds when money is already tight can seem like it’s going to take forever. It won’t. You need to think smart, follow these tips and soon you’ll have enough cash ready to obtain a mortgage for your first ever home.
Assess Your Finances
You need a baseline to inform you of your current financial situation. Work out how much you have in savings and how much you could realistically save each month. Streamline your monthly budget and strap on your frugal pants. The next year or so will see a new thrifty side of you. Your social calendar may see a decrease in engagements, and you might not be taking trips to the finest eateries in town, but it will be worth it when you pick up the keys to your very first property.
Clear Your Debts
In conjunction with your saving plans, you need to try and clear as much debt as possible. Hopping onto best.creditcard will allow you to compare cards that offer 0% on balance transfers. By applying for one of these pieces of plastic, you can consolidate all of your debt onto one card, making repayments easier and less hassle. Ensure that you always pay more than the minimum payment each month otherwise you’ll only be skimming the surface of the interest and ensure that you don’t miss any payments. No matter how much deposit you manage to save, if you’ve missed a credit card bill, your credit score will take a nosedive, and home loan lenders will not look favorably on your application.
Sell Your Stuff
To top up your savings, take a look around your rental home and sell the stuff you no longer need. If you haven’t used an item in twelve months, it’s time to list it on an auction site like ebay.com. You’ll be surprised at just how in demand your kit might be. Sell numerous items, and you could have a handsome amount to put into your savings account.
Reconsider Your Car
If you live in the center of town, do you really need your gorgeous set of wheels? You could sell your vehicle for a princely sum, top up your savings and then rely on public transport. Even if you do need a car for longer journeys now and again it might make more financial sense to sell your car and sign up to a car share scheme.
By looking at every aspect of your finances, you can hone your budget, downsize your belongings and increase your savings. Getting your deposit fund up to the amount you need may seem arduous, but once you see the money accruing, you’ll be motivated to ramp up the savings even quicker. The stress, strains and lack of social life will be worth it when you are stood in your new home thinking about what shade of blue to paint your living room wall.