With the price of living dramatically rising and wages not meeting the same figures, it’s no wonder that people are struggling to even make ends meet, never mind buying their own home!
Buying a property to settle down and raise a family in is the dream of many people around the world. However, being able to afford to buy your own home is now harder than it has ever been.
House prices have risen at an extortionate amount over the past few decades, and many people are having to settle for renting.
However, becoming a homeowner isn’t completely off the cards, so check out these tips on how you can get your feet firmly on the property ladder.
Move in with family
One of the best ways of getting yourself onto the property ladder is by reducing as many costs as possible. A great way to achieve this is by moving in (or not moving out) with family.
Even if you’re still paying them housekeeping and money towards food, the remainder of your money each month can be saved towards buying your own home.
Check out the average cost of buying a house in your area so that you know what kind of figure to aim for. Doing it this way will enable you to save faster and more efficiently too, so it’s definitely something to consider.
Look at help to buy schemes
We understand that the above option isn’t a viable one for many people, but luckily there are now help to buy schemes out there that can help people that aren’t able to save for a large deposit, buy their own homes!
Prospect homes have new homes for sale and are able to offer people a help to buy option. It works by buying your home a percentage at a time, and paying rent alongside a mortgage payment.
At the end of your first percentage, you can either sell it back to them, or continue to purchase the rest of your home. Either way, you’ll be a homeowner! Another bonus? You often don’t need a large deposit with these kind of schemes.
Set a budget
It’s important to know how much you can ideally afford when it comes to mortgage repayments. Even if you’ve managed to scrape together enough for a deposit, mortgage payments can still rocket through the roof.
Don’t be fooled by low deposit offers from lenders either, as you could end up yet again with high mortgage repayments.
Work out how much you earn each month, take away necessary bills and the figure you’re left with should be what you’re aiming for with your mortgage repayments.
Keep an eye on your credit score
Finally, your credit score is more important than you think, even if you’ve never had bad credit! Lenders look for a credit history and if you don’t appear, you could be rejected just as fast as someone who has a bad credit history. Download and use Clearscore for helpful tips and explanations on how to improve your credit score!