Most people like to stay local to their friends and family unfortunately with rising house prices this can become difficult to afford and some first time buyers may need to lower there expectations where they can get on the property ladder.
We spoke with a local mortgage advisor from Get Me My Mortgage to find out how a first time buyer can get on the property ladder in their dream location.
‘If a first time buyer is looking to purchase a large property then they will likely need a large deposit and a good credit history to be accepted for a large mortgage. When looking for large loans over £500,000 there is no availablity for the help to buy scheme unless you are in London. This means that you will likely need a deposit of at least 10% of the property value. You will then also need to pass affordabilty and credit checks to ensure that you don’t have any adverse credit. Although there are specialist lenders out there that can help with adverse credit mortgage you will be more likely to get accepted and at a better rate if you have a clean credit history’. (if you have previous adverse credit and are interested in discussing your mortgage options click here for more information)
So what is the best way to save for your deposit? Below are some useful tips that you can use to save a little extra each month.
1 – TV packages
The average tv page costs over £50 per month and thats not including sports and movie packages. Reducing this can save you over £700 per year.
2 – Freelance work
If you cant save with your current job but you have the option to take on additional work then freelancing can be a great way to boost your savings. Sure its more work but it wont be forever just to help get you the house of your dreams.
3- Lifestyle Change
Changing your eating out and drinking habits can save you thousands each year that you can put into your house fund. ITs not fun but a short term sacrifice can help you in the long term.
It is difficult to get onto the property ladder especially in an expensive area but it can be done if you build up a good level of savings.
We would love to hear from our readers that have managed to buy a house in there dream area, get in touch!