You will need to have saved a deposit - in most cases the bigger the deposit you can put down, the lower the interest rate is likely to be. Open a dedicated savings or investment account and make sure it's paying a competitive interest rate.



Budgeting

It's important to review your income and outgoings. Cut back on things like unused subscriptions and watch how much you soend on things like eating out. Prospective lenders will also look at the debt you currently have. If you have any savings, it makes sense to pay off loans and credit cards but be sure to leave yourself enough for emergencies.



Check Your Credit Score

A good credit rating can help you secure a better mortgage deal, with a lower interest rate. The general rule is the higher the score the better. If your credit score is low you can improve it by paying more than the minimum payments on a credit card, bring your overdraft down, close unused credit accounts or register for electoral roll.



Support From Families

By 2025, "Bank of Mum and Dad" is expected to back 357,200 home purchases each year by lending or giving you cash to help with a deposit or acting as a guarantor.  According to Legal & General and the Centre for Economics and Business Research (Cebr), financial assistance from family members is set to underpin 318,400 housing transactions in 2023. This lending is now called "Bank of Family" to reflect better the diverse contributions from various family members.



Get Some Good Advice

Taking advice will save you time, money and stress. We know the industry and the most appropriate lenders, to be able to recommend the most suitable mortgage for you. We can also offer useful advice on all aspects of the house buying process and be able to help you get a decision in principle from a lender, which will give a seller the confidence that you are a serious buyer.

Key Takeaways:

• Save Up:

A bigger deposit means better interest rates; use a high-interest savings account.

• Budget:

Cut unnecessary expenses, pay off debts, and keep an emergency fund.

• Credit Score:

Improve your score to secure better mortgage rates; pay down debts and register to vote.

• Family Support:

Family can help with deposits or act as guarantors, aiding many home purchases yearly.

• Advice:

Professional guidance ensures suitable lenders and a smoother buying process.



YOUR HOME MAY BE REPOSSESSED IF YOU FAIL TO KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE

Approved by The Openwork Partnership on 11/01/2024