Are you in the market for your first home? Whether you’re a recent grad just starting out or you’ve been renting for a while and are ready to take the plunge, buying a home can be a daunting task. But it’s also an exciting one! Here are 10 money saving tips to help you get started.
In this post, debt help experts Creditfix share the top 10 money saving tips for first time home buyers. Alongside helping 1000s of individuals fight debt each year, Creditfix also provide information on everything from everyday budgeting tips to Council Tax Debt Help & advice.
Check out these 10 money saving tips to help you get started.
1. Start budgeting early
If you’re serious about buying a home, it’s important to start budgeting as early as possible. Work out your income and expenditure, and see where you can make cutbacks in order to save more. This will give you a better idea of how much you can afford to put towards a deposit, and will help you to stay on track once you’ve got a mortgage.
2. Get a good mortgage deal
Shop around for the best mortgage deals before committing to anything. There are a lot of different deals out there, so it’s important to find one that suits your needs. It’s also worth speaking to a financial advisor to make sure you’re getting the best deal possible.
3. Save, save, save
The more you can save for a deposit, the better. Try to put away as much money as you can each month, and make use of any tax-free savings options (such as ISAs) that are available to you. Every little helps!
4. Consider a longer mortgage term
If you’re struggling to afford the monthly repayments on a shorter mortgage term, consider extending the term to reduce the amount you need to pay each month. However, this will mean you end up paying more interest in the long run, so it’s important to weigh up the pros and cons before making a decision.
5. Think about downgrading your home
If you’re finding it difficult to save up a deposit, you may want to consider downgrading your dream home to something more realistic. This doesn’t mean you have to settle for something you don’t want, but it’s important to be realistic about what you can afford.
6. Get help from the government
If you’re a first-time buyer, you may be able to take advantage of the Help to Buy scheme. This scheme offers an interest-free loan of up to 20% of the purchase price of your property, which can make it easier to afford a deposit and monthly repayments.
7. Have a realistic budget
When budgeting for your first home, it’s important to be realistic about what you can afford. Don’t overstretch yourself and end up in financial difficulty – make sure you can comfortably cover the cost of your mortgage repayments each month.
8. Shop around for insurance
Once you’ve bought your home, you’ll need to take out buildings and contents insurance. Make sure you shop around for the best deals and don’t be afraid to haggle – you could save yourself a lot of money.
9. Get energy-efficient
Making your home more energy-efficient is a great way to save money on your bills. There are a number of things you can do, from installing double glazing to insulating your loft. You may also be able to get help from the government with the cost of making these improvements.
10. Be prepared for unexpected costs
When budgeting for your first home, it’s important to be prepared for unexpected costs. Things like conveyancing fees, stamp duty and survey fees can all add up, so make sure you factor them into your budget.
By following these money saving tips, you can be sure you’re getting the best deal possible when buying your first home. With a little bit of planning and research, you can make your dream of owning a home a reality.