Buying a property will be one of the largest financial commitments you make in your life so it needs a lot of thought and planning.
The majority of people will need a mortgage which is basically a loan secured against the property. Most mortgage lenders require you to put in a deposit of 10% upwards of the purchase price. For example if you are buying a property for £100,000 and you are putting in a 10% deposit you would need to save £10,000. For some people this sounds like an impossible challenge, but by following our simple tips you can start saving today.
1. Scrap the luxuries you can live without - Potential Saving of £1200.00
Firstly you should get yourself organised by creating a spreadsheet detailing what you earn each month and what your current outgoings are. Any luxuries that you can live without such as gym memberships, dining out, new clothes could be a good place to start saving. You don't have to give up your social life or that new pair of shoes all together but just try cutting back.
2. Ditch the rental property & move back with your parents - Potential Saving of £7200.00
If you are currently renting a property which is a huge drain on your monthly income is it possible to move back home or stay with a relative ? This could potentially save you £600 upwards per month. It doesn't have to be forever - over a 12 month period this would give a huge boost to your savings.
3. Make your own lunch & coffee rather than buying it each day - Potential Saving of £1347.00
That morning coffee you buy from your favourite coffee shop each day that costs just £2.50 and that lunchtime meal deal for £3.50 can be a lot more expensive than you might think, For the average worker this could be costing you £1347.00 per year - save money by making your own lunches.
4. Sell any unwanted items - Potential saving of £400.00
We're all guilty of it, rather than hoarding these belongings why not sell them to raise some extra cash. A good place to start is your wardrobe, anything you haven't worn in the last 12 months probably isnt going to ever get worn again - Sell it! As the saying goes, another persons junk, is another persons treasure. Websites such ebay.co.uk are a great safe and secure place to sell your stuff.
These simple tips could potentially save you over £10,000 and help get you onto the property ladder sooner than you think. Once you have started saving & made a dent in getting your deposit together the next step is to look at what mortgages are available to you. Contact Liverpool Residential for free mortgage advice with one of our independent advisors - Tel: 0151 322 2003.