It is notoriously difficult to get onto the property ladder. As the cost-of-living increases and house prices rise, many people are looking for ways to make buying a home more affordable. If you’re keen to get your hands on the keys to your first home, this guide contains helpful tips.
Try to improve your credit score
Improving your credit score is beneficial if you’re trying to get a mortgage to buy a house or an apartment. Your credit score is a rating that represents your level of risk. If you have a very high score, a lender will class you as low-risk. If your score is low, this means that you present a higher risk to lenders. Before you apply for mortgages, check your credit score and try to improve your rating. The higher your credit rating, the better the chances of being able to borrow money. If you have an excellent score, you should also be able to access preferential rates and deals, which will save you money.
Save as much as possible for your down payment
Saving for a down payment, also known as a deposit, is one of the most challenging aspects of buying a property. It’s difficult to save, but if you can save as much as possible before you take out a mortgage, you’ll benefit from better mortgage offers and you’ll be borrowing less money.
Consider sharing the cost
Many people struggle to afford to buy a house on their own or as part of a couple. If this scenario is relevant to you, there are options. You could consider buying with a friend or family member, or look into shared ownership schemes. You may find that a relative is keen to put money in as an investment, or that you have friends who want to buy but can’t afford to take the plunge solo. If you’re buying with your partner, or you don’t want to get others you know involved, you can split the cost with a lender through shared ownership. Use online tools to calculate shared ownership rent and make sure you understand the terms and conditions before you proceed. In many cases, you can start with a share and then increase the amount you own when you can afford it.
Explore different locations or property types
In an ideal world, we would all be able to afford our dream homes. Unfortunately, we often have to compromise, especially when it comes to our first homes. If you can’t afford what you’re looking for, consider different locations or property types. Expanding your search area or looking in different parts of the city or country can open up a much wider range of properties and save you money. You could also explore houses that need updating, or consider buying an apartment rather than a house to lower costs.
It’s not easy to get onto the property ladder, especially with the cost of living increasing. If you’re trying to save, or you’re struggling to find houses or apartments within budget, take these tips on board to make buying your first home more affordable.
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