5 Tips to Help You Save For a First Mortgage

 **Collaborative Post**

AD: Getting your first mortgage is likely to be one of the biggest financial decisions any of us will make and it can feel like a daunting decision especially when you start thinking about how much you will need to save for things like a deposit and expenses before you can even apply. Saving first your first mortgage can seem like a daunting process for first time buyers but fear not there are plenty of things you can be doing right now that can help you budget and achieve that dream of owning your first home. 

Keep reading below to find some helpful tips that could put you on the right path to feeling more financially ready for a mortgage and on the way to owning your very first home. 

Seek Advise from a Mortgage Advisor and Broker 

The world of mortgages can be a confusing one and it can be easy to get lost in all the lingo, figures and daunting numbers being thrown around. Which is why many people find it really useful to go seek help from someone such as a mortgage advisor and broker. Ultimately a mortgage advisor can save you a lot of time, money and often stress too as they work with you to fully understand your budget, needs and help you find the best mortgage and deals, often saving you money in the long run too. 

Using a mortgage advisor or broker can also be a great option for trying to obtain a mortgage over using a bank if you have less than ideal circumstances as they often able to work with you to secure you a mortgage when banks may have already turned you away. 

Start Saving, it all Adds Up! 

When you first work out realistically how much you are going to need for a mortgage deposit it can seem like a daunting, almost impossible task ahead. A mortgage deposit can typically be anywhere between 5% and 25% of the mortgage value but you may need even more if you are looking to buy a more expensive home. But try not to look at the overall figure, at least not at the beginning anyway, instead just make a start, starting is better than nothing. 

Start putting away a small amount each month, if you cut out things (keep reading below to find out more about this), try putting that money into savings instead. If you are worried about forgetting and dwindling your money try setting up a direct debit to come out of your bank a day or two after you are paid to go into a savings account, make sure it is an affordable amount for you each month and have it transferred straight into another account so you can't be temped to spend it. You can even find some government schemes and accounts that will pay you extra money when you pay into them too so keep an eye out for these and make sure you apply if you can!

Don't Make any Big Changes 

It can be temping to try to make some big changes in your life to make your dream of owning a home seem easier, but the reality is this can actually set you back. Things like changing jobs to earn a little more money for saving etc may seem like a good idea but mortgage companies and banks like to see you have been in your job for a good amount of time and that work is stable and secure. 

The same goes with making any big purchases or taking out new finance agreements, seeing these on your bank statements when you are trying to apply for a mortgage can be a big red flag and will also cut down the amount you are about to borrow as you will have more outgoings to consider. If you can try to hold back on making any big changes until after your mortgage is agreed and secure. 

Look at Ways to Cut Back on Non Essentials 

For the majority of people, saving up for a mortgage is going to mean cutting back and being strict with what you spend. It may mean having to give up some luxuries and non essentials, cutting back on day trips, holidays and evenings out with friends and whilst that sounds rubbish you just have to think about the end goal, and remember it won't be forever. You just have to remind yourself how important the end goal of securing a mortgage is to you and this can help you when it comes to cutting back. 

If you are saving with a partner both sit down together and work out what are your essentials, your non essentials and your luxuries and then work out which ones you are both willing to cut out for the time being. Your essentials are things like your bills, your travel to and from work and of course a realistic food shopping budget. Your non essentials are things like takeaway when you can't be bother to cook, could you cut these down, or cut them out completely? Just think about how much you would save! Then finally your luxuries, these are things like holidays, trips to the pub and random shopping trips to buy unnecessary items. None of which you "need" and the more you can cut out, the more you can save and the quicker you will reach you goal and can start reintroducing these things too. 

Pay off any Old Debts

Many of us are guilty of having some debts lurking in our closets. Perhaps old shopping accounts that we only make minimum payment on, or credit cards etc. All of these are going to be seen when you apply for a mortgage and the less you have, the better. Banks and mortgage providers want to see as little outstanding debt as possible because if you have debt it could show that you are struggling to pay it back, and if your struggling to pay back a small debt, that could mean bigger problems when it comes to a mortgage! 

There are a few ways you could do this, including paying off more than the minimum payment each month to pay them off quicker, pay the minimum on all debts but throw everything you have at one debt at a time, paying off that one debt super quickly and moving onto the next. Or if you have lots of little debts with high interest rates you could look at moving them all onto one low interest card and paying that off as quickly as possible to limit how much interest you end up paying. Whichever way you choose to pay them off, paying them off should be a priority before you apply for a mortgage. 

Are you looking to secure your first mortgage? Or perhaps you are already in your forever home. Which ever it is, please do share your top tips, things to avoid and anything help in the mean time. 

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