Top 12 Tips on How to Save for Your First Mortgage

First time home buyers are often overwhelmed with the amount of advice and information that exists for those looking to secure their first mortgage. While this can be helpful, it can sometimes prove to be outdated, unreliable or simply just not applicable to your situation. 

Luckily, debt help experts Creditfix have shared their top 12 tips on saving for a first mortgage. As one of the UK’s most established debt help experts Creditfix, alongside delivering the latest debt solutions, offer expert advice on everything from mortgages after IVAs to budgeting and saving tips

See below the top 12 tips: 

1. Create a budget and stick to it.

One of the best ways to save money is to create a budget and stick to it. This means planning out your expenses in advance and making sure you aren’t overspending each month. When you have a budget, you are more likely to stick to your savings goals.

2. Automate your savings.

One of the easiest ways to save money is to automate your savings. This means setting up a direct deposit from your paycheck into your savings account. This way, you never even see the money and it’s easier to save.

3. Cut back on your expenses.

If you want to save money, you need to start by cutting back on your expenses. This means finding ways to reduce your spending in all areas of your life. Try cooking at home instead of eating out, cancelling unused subscriptions, and driving less.

4. Make a budget for your home purchase.

When you are saving up for a home, it’s important to create a budget specifically for that goal. This means estimating how much you will need for a down payment, closing costs, and other related expenses.

5. Sell unused belongings.

One of the quickest and easiest ways to save money is to sell your unused belongings. This could be anything from old clothes and furniture to electronics and appliances. Try hosting a garage sale or selling items online.

6. Make extra money.

If you want to save up for a home quickly, you will need to find ways to make extra money. This could mean taking on extra shifts at work, starting a side hustle, or finding creative ways to make money.

7. Invest your money.

Investing your money is one of the smartest things you can do when saving for a home. This means putting your money into stocks, mutual funds, or other investment vehicles. Over time, these investments will grow and you will have more money for a down payment.

8. Use a savings account specifically for your home.

When you are saving up for a home, it’s helpful to have a dedicated savings account. This way, you can see exactly how much money you have saved and you won’t be tempted to spend it on other things.

9. Get creative with your budget.

When it comes to saving money, there are no rules. You can get creative with your budget and find ways to save that work for you. Maybe you want to start a budgeting challenge or put your money into a high yield savings account.

10. Make a plan and stick to it.

The most important thing when saving for a home is to make a plan and stick to it. This means setting realistic goals and deadlines and not wavering from your budget.

11. Don’t forget about closing costs.

When budgeting for a home, don’t forget to budget for closing costs. These are the fees associated with buying a home and can range from 2-5% of the purchase price.

12. Talk to a financial advisor.

If you want help saving for a home, talk to a financial advisor. They can help you create a budget, invest your money, and reach your savings goals.

Saving up for a home can feel like an impossible task. But with these 12 tips, you can make it happen. Just remember to budget, automate your savings, and get creative with your finances. With a little effort, you will be on your way to owning your first home.

So, whether you’re fresh out of university and just starting to think about buying a house or you’ve been renting for years and are ready to take the plunge, use these tips to start saving for your first mortgage. It may seem like a daunting task, but with a little bit of planning and effort, you can make it happen.