Are you considering purchasing your first home, but feel daunted by the amount of money you need to save for a down payment and closing costs? Saving for your first mortgage can present a difficult challenge for first time buyers.
Don’t worry – there are plenty of ways to come up with the funds you need. Below, debt help experts Creditfix have shared their best proven ways on how to budget securing your first mortgage.
Alongside helping individuals fight debt, Creditfix offers specialist advice on everything from mortgages after an IVA to budgeting and savings tips.
Check out our list of the 12 best ways to save for your first mortgage
1. Start by creating a budget and sticking to it
One of the best ways to save money for anything is to create a budget and stick to it. When you know how much money you have to work with each month, you can start to allocate your funds specifically towards your mortgage deposit savings.
2. Automatically transfer money into your savings account to help save for your first mortgage
Another great way to save for your mortgage is to have the money automatically transferred into a savings account earmarked specifically for this purpose. This way, you won’t even miss the money and it will add up quickly over time.
3. Use a “round-up” account to save money for your first mortgage without even noticing
A round-up account is a great way to save money without having to make any significant changes to your current spending habits. Basically, this type of account rounds up each purchase you make to the nearest dollar and deposits the difference into your mortgage savings account. So, for example, if you spend £4.75 on a coffee, your account would deposit 25 pence into your mortgage savings account.
4. Make use of online calculators to determine how much you need to save
If you’re not sure how much money you need to save in order to afford a mortgage deposit, there are a number of online calculators that can help. This way, you can tailor your savings plan specifically to your needs and budget.
5. Sell items you no longer need
One great way to raise some extra money for your mortgage deposit is to sell items you no longer need. Whether it’s clothes, furniture or appliances, there’s likely something in your home that you can live without. And the best part is, you can get some extra cash for it!
6. Cut back on unnecessary expenses
Another great way to save money for your mortgage is to cut back on unnecessary expenses. Things like eating out, cable TV and luxury items can all be reduced or eliminated without too much difficulty. And the more money you can save in this way, the closer you’ll be to your mortgage deposit goal.
7. Look for ways to reduce your monthly bills
If you’re already trying to cut back on expenses, another great way to save money is to look for ways to reduce your monthly bills. There are likely a number of services you’re paying for that you don’t even use. Review your bills and see where you can make some changes.
8. Make a list of priorities and stick to it
When it comes to saving money for anything, it’s important to have a list of priorities and stick to it. Mortgage deposits should be a high priority for anyone looking to buy a home, so make sure you adjust your budget and spending habits accordingly.
9. Participate in a “no spend” month
If you really want to ramp up your mortgage savings efforts, why not try participating in a “no spend” month? This means that for the entire month, you don’t spend any money on anything other than absolute necessities. Of course, this can be a bit of a challenge, but it’s definitely doable if you’re willing to put in the effort.
10. Make a list of your priorities and find ways to save money on each one
If you’re having trouble saving money for your mortgage deposit, it might help to make a list of your priorities and find ways to save money on each one. This way, you can still achieve all of your goals while also putting money aside for a mortgage.
11. Cut back on your first mortgage budget
If you’re really struggling to save money for a mortgage deposit, one option is to reduce the amount you’re willing to spend on your mortgage. This could mean opting for a smaller home or agreeing to a longer mortgage term. Just be sure that you’re comfortable with the financial implications of making these changes
12. Use a mortgage broker to find the best deal when saving for your first mortgage
Finally, if you’re really struggling to save money for a mortgage deposit, one option is to use a mortgage broker. Mortgage brokers can help you find the best mortgage deal available, which could save you a significant amount of money in the long run.
Ready to save for your first mortgage
Making the decision to buy your first home is a daunting one. Luckily, by following the above tips and tricks, you will be well on your way to securing your first mortgage!
Have a question or wish to find our more? Then simply get in touch with us and one of our friendly team members will be on hand to help you
