Your Essential Guide
Buying your first home is exciting, but all of the costs can also make it feel overwhelming, especially when managing costs. Fortunately, there are plenty of ways that you can save money both in the short and long term – including working with a mortgage advisor!
Set a Realistic Budget
The first step in saving money is understanding how much you can afford to spend. Take a close look at your income and outgoings, along with any savings you have right now, to establish a realistic budget for buying your first home. Don’t forget to account for additional expenses like moving fees! By knowing how much you have to spend right from the start, you can stick to properties in your budget and avoid any disappointment and wasted time.
Focus on Your Deposit
While a 5% deposit may be enough to secure some mortgages, aiming for a larger deposit can save you money in the long run. A bigger deposit often means access to lower interest rates, which can really reduce your monthly repayments and total borrowing costs. So, if you are able to, put more money away for a deposit to secure yourself a mortgage that is going to serve you well for years to come.
Work with a Mortgage Broker
Many first-time buyers assume that finding a mortgage is something they should do themselves if they want to keep costs down, but working with a mortgage broker can actually save you money! Mortgage advisors are aware of the best deals and could find you one that saves you thousands over the life of your mortgage. They also handle all of the paperwork, saving you time and reducing the risk of costly mistakes.
Brokers will thoroughly assess your financial situation and recommend the best mortgage products for your needs, and they will be able to provide expert advice that makes the whole process much easier. Plus, many will have guarantees that if they don’t find you a mortgage, you won’t have to pay them a penny!
Compare, Compare, Compare!
Once you’ve purchased your home, ongoing costs like energy bills and insurance can quickly add up. It’s a great idea to look at comparison websites to find the best deals on these, and you will be surprised at just how much you can save sometimes! It’s easy to put off switching providers as it seems like a lot of effort, but it can keep your costs low and ensure you’re not overpaying for essential services. You should also think about things like TV and broadband and opt for a package that meets your needs without any unnecessary extras.
Minimise Moving Costs
Moving to a new home can be expensive, but there are ways to cut costs. Sell or donate items you no longer need to reduce the amount of stuff that you have to take with you. Selling items also means that you’ll have more money for your new home fund! Then, get quotes from multiple removal companies to find the best deal. They can charge more during weekends and school holidays, so try to avoid those popular times if you can!
You’re All Set!
Buying your first home is a huge commitment, but there are many ways to save money throughout the process. So why not get the journey started today?
