Well maybe it’s an ideal time to start planning now. One of the main challenges faced by a first time buyer is building up a deposit sufficient enough. The first step is to work out how much deposit is required and how much mortgage you are able to afford. This can be calculated on our website at www.rosebankmortgagebrokers.co.uk.
Then the next step would be to manage your finances and calculate how much you’d require to put away monthly in order to achieve your goal. You don’t just have to stash your money away into a savings account there are various government schemes out there which even contribute towards your deposit. For example there is a Help to buy ISA or even a Life time ISA where the government top up any contributions you make to these accounts by 25%. The Bonus is only provided on the basis of using the money to purchase your home.
Subsequently once having saved your money, choosing the right mortgage for you is the next step. Start by the choosing the type of mortgage you want. For example if you want certainty of payments and fixed monthly payments, a fixed rate option might be the right option for you. If you are comfortable with less certainty of payments you can opt for a standard variable rate or even a base tracker rate which if interest rates rise, you are contributing more to monthly payments but also the benefit is, if interest rates decrease so do your monthly payments.
How to save money after purchasing your home?
A good suggestion would be to keep your monthly mortgage payments to a low by switching products with your current lender when the previous one expires and also another alternative would be to remortgage with a new lender with lower rates. All subject to individual circumstances.
Speak to one of our team today at rose bank mortgage brokers to see if we can help you today.