When we want to buy a home most of us will be looking for a mortgage. This will allow us to borrow the money that we need in order to own the house. However, most mortgages require a deposit. The deposit is normally a percentage of the cost of the house. The lender will want this not only to protect them against house price falls in the event of the repossessing and having to resell, so they know there are more likely to get all of their money back but to show that you are capable of saving money. There is
– Save first – what this means is that when you get paid, put some money into a savings account first. This locks the money away and will mean that you are less likely to spend it as you will not see it in your current account. You will obviously need to carefully calculate how much money this might be, as you will need to leave enough to cover your bills for the month. It can therefore be worth looking through bank statements and seeing what you normally spend and therefore how much you can afford. It can
– Compare all prices – when you are buying anything then it is wise to compare prices. IT is not always wise to buy the cheapest things as they may not give you value for money. However, many of us shop without noticing how much things cost and this is not wise if you want to save up a lump sum. Also, if you have long term agreements be it with existing lenders or even through guarantors , such as contracts for phones and broadband or deals with utility suppliers then make sure that you are not paying more