The route to home ownership is not one that comes easily. But, if you are keen to put your foot on the first rung of the property ladder, it’s always best to be in the know. When you are saving for your first home, you are all too aware of the massive deposits that are required from you. As such, as such it can seem as though you are saving forever. It’s not a pleasant thought.
Don’t worry! You will have your dream home. Yes, the saving process can be tough. But, once you have the deposit and your first set of keys, it will have been worth the stress.
There are some things that you need to know in the face of home ownership.
Let’s take a look at these considerations.
Be Mindful of Monetary Gifts
When someone offers you money towards your deposit, you may be tempted to snatch their hand off. But, do bear in mind that when you take your deposit into the bank, they will want to know how you have saved the money. As such, if you have been gifted, financially, they will want to look at the accounts of the person that has given you the cash. You will need to obtain proof, letters and all manner of documentation to prove that this money has been given to you. Yes, it’s odd. But, that’s how the weird world of mortgages works. If you want to make sure that you are not holding up the process, save the money yourself.
Shop Around: Think Beyond the Bank
Your bank may be an excellent source of mortgages. But, they can be costly too. High streets banks have some of the highest associated rates of interest. If you want to make sure that you are getting more bangs for your buck, try independent mortgage providers. These can be a savvy route to take if you don’t want to get stung on those interest rates.
Make Sure You Find a Flexible Deal
Flexible and variable deals are good value at the moment. The experts at Sherwood Mortgage Group have kindly told us that you should consider these types of mortgages as opposed to a fixed rate. As the housing market and the current economy is still in a dip, you can see better savings from your base rate. As such, you can save a good amount on your mortgage. Of course, if you are settling into a life of domestic bliss and you want to know how much you have coming and going each month, fixed rate may be best for you in the meantime. Still, it’s worth investigating.
The More That You Save, the Better
When you are saving for your deposit, the last thing that you want to be told is that you need to save more. But, only have between 5% and 10% means that you are missing out on the best deals. If you want to see a lifetime of savings, aim to save 25% of the total. That way, you can ensure that you get the best deals overall.