Mortgage saving tips for the New Year
The New Year is fast approaching and for many people that means a time of reflection.
If you’ve been planning to start saving for a mortgage then now is a good time to get things in place. You might even be able to make a head start on 2019 by saving up a little before the year is out.
Saving up for a mortgage will usually require you to have at least 10% of the properties price. Some mortgages might accept a lower rate of just 5% and a few might accept a 0% deposit as well although these are incredibly rare and not often recommended due to the increase in interest rates.
But even if you find a smaller 5% mortgage, you’ll still likely need to save up quite a bit of money and that isn’t always easy. So, to help you get started for the New Year I’ve listed some great mortgage saving tips that anyone can benefit from.
Find Cheaper Accommodation
If you want to save up to buy your own home then you need to ensure you aren’t spending too much on your current home. If you’re currently renting then having enough to cover essentials, pay your rent and actually have enough put aside to save can be tricky, so you should try to find a cheaper alternative.
There are a number of ways you can do this with one of the most popular being to move back home with your parents. If that isn’t an option for you then you might be able to move in with a sibling or rent a room instead of an apartment or house. Renting a room will give you a lot less space but it is much cheaper.
Rent A Room
You could also take the opposite approach instead of looking for a room to rent you could rent one of yours out! If you have the space in the property you’re currently in then you could look for a roommate to help cut the cost of the rent. Although you will have to make sure your landlord is OK with you doing this first, as it’s classed as a “sub-let” which is illegal without permission.
Get A Savings Account
If you are serious about saving next year then you should get a savings account set up at your bank. A savings account will help you avoid the temptation to spend money and you will also get interest for the money you put in it.
Setting up a savings account is quick and easy and it will be very helpful, just get yourself into a routine and as soon as your payday approaches, put some money into the account. After a few months have passed you might be surprised by how much you’ve managed to save.
Cut Costs
If you’ve found saving money difficult then you should look at improving your budget and find ways to cut costs. This can be difficult because there are always going to be things you don’t want to get rid of even though you know it could save you a lot of money.
To make it easier, look at things you can do to save money on your essentials. For example, can you get a cheaper energy supplier or save money on your broadband? You can also look at other expenses as well- for example if you eat out a lot at work then bring in a packed lunch instead.
There are lots of ways you can save money when you look at cutting your daily expenses and even small cuts can build up to save you a lot of money over time.
Generate Extra Income
This is called a “side hustle”. If you want to reach your mortgage goal more quickly than getting another job will certainly help you save money. Of course, for some people getting an extra job won’t be an option, if you work full time then you likely won’t be able to fit in another job.
However, if you only work part-time then you should consider looking for either another part-time job or a full time one. These aren’t the only ways you can generate extra income though- you could work on a freelance basis or use websites like eBay to sell unwanted goods and items.
Government Schemes
Every government wants to help people buy their first home although the way they go about doing it is different. Currently, there is a number of schemes to help people buy their first house with the Help To Buy Scheme being the most well-known.
These schemes will have certain limitations so you might not always be able to benefit from them but if you can then they are certainly worth checking out. So, make sure you take a look at the Governments website to find out more information about how these schemes can help you.