How To Boost Your Mortgage Deposit
21 June 2021
Here’s some tips for boosting your mortgage deposit when you are saving to buy your first home! Having a bigger deposit is of great benefit to first time buyers as it can mean you have generally lower interest rates and monthly repayments.
Get Independent Mortgage Advice
• An independent mortgage adviser can highlight different options to you, this could mean you don’t need to save as much money as you may think.
• If you need a larger deposit, an independent mortgage adviser can advise on ways to boost your deposit
Save As Much Money As You Can
• If you can save money, the save as much as possible. It is worth working out a monthly budget that determines how much you can save per month.
• Once you have a monthly amount calculated for saving each month, set up a savings account.
• Along with this a good idea is to set up a standing order that will transfer to your savings account every month, this way you don’t have to think about saving money as it will happen automatically, meaning you could reach your savings goal quicker.
Set Up a Lifetime ISA
• If you are starting to save but not buy for at least a year, you may want to consider a setting up a Lifetime ISA. This gives you a 25% tax-free bonus from the Government on savings and can save up to £4,000 a year. This means there is a maximum yearly bonus of £1,000.
• You must have had your Lifetime ISA for at least a year in order to use the money to buy a property, therefore it is not a good idea for anyone planning to purchase a house within a year.
Research a Variety of Different Areas
• Homes in popular areas can be extremely expensive, meaning you will require a larger deposit.
• Researching different areas may result in finding a more affordable home close by to your first desired area but with a smaller price tag, meaning you don’t need as big a deposit.