Saving for a deposit can be challenging, especially when house prices are rising, but at The Mortgage Social, we’re here to help. Based in Warwickshire, we provide friendly, expert mortgage advice to help first-time buyers like you take the right steps toward homeownership.
Here are some key points to consider as you move forward:
1. Low-Deposit Mortgages Are Available
Many lenders offer mortgages with deposits as low as 5%, which in your case would be between £10,000 and £15,000 based on the house prices in Warwickshire. However, a larger deposit can give you access to better mortgage deals, so if you can increase it, you may benefit from more favourable interest rates.
2. Consider Property Valuations Carefully
If you pay above the market value for a property, remember that lenders will only provide a mortgage based on its valuation, not the purchase price. For example, if the property is valued at £150,000 and you put down a 10% deposit (£15,000), your mortgage will be for £135,000. However, if you buy the property at £160,000, you would need to cover the additional £10,000 yourself, bringing your total outlay to £25,000 plus the mortgage.
3. The Bigger the Deposit, the Better the Mortgage
A higher deposit means a better loan-to-value (LTV) ratio, which can lead to more competitive mortgage rates. If you can save between £20,000 and £30,000 in total for your deposit in the Warwickshire area, you will get access to better interest rates (based on a 10% deposit over a 5% deposit).
Maximising Your Savings
1. Get the Best Savings Rate
Make your savings work harder by shopping around for the best interest rates. Even small percentage increases can make a big difference over time. Look into ISA accounts or high-interest savings accounts to get the most out of your deposit.
2. Keep a Tight Budget
While it’s important to enjoy life, sticking to a weekly budget can help you save faster. Track your spending and look for areas where you can cut back. Every little bit you save will bring you closer to your home-buying goal.
Alternative Options to Boost Your Buying Power
1. Guarantor or Joint Borrower Mortgages
Consider a guarantor mortgage or a joint borrower, sole proprietor mortgage. A parent or family member can join the mortgage, which boosts your borrowing capacity as their income will be factored in. However, these arrangements can be complex, so it’s important to seek legal advice.
2. Gifted Deposits
Many lenders accept gifted deposits from family members, which can help increase your deposit amount. This is another option to explore if it’s available to you.
3. Government Schemes
Keep an eye out for government schemes designed to help first-time buyers. These initiatives can offer additional support, so make sure to explore all available options. Your mortgage broker will be able to advise you on the latest programs.
How The Mortgage Social Can Help
At The Mortgage Social, based in Warwickshire, we specialise in helping first-time buyers like you. Our knowledgeable team can guide you through every step of the process, from boosting your deposit to securing the best mortgage deal. With our friendly, professional service, you’ll have a partner by your side to make your dream of homeownership a reality.
Contact Us Today
Ready to get started? Reach out to The Mortgage Social for expert mortgage advice in Warwickshire and let us help you find the best solution for your situation.
🏡 Your home may be repossessed if you do not keep up repayments on your mortgage 🏡
🏡 You may have to pay an early repayment charge to your existing lender if you remortgage 🏡
🏠 Your property may be repossessed if you do not keep up repayments on your mortgage 🏠
☔️ As with all insurance policies, conditions and exclusions may apply ☔️
☔️ The cost of this insurance depends on several factors, such as your age, where you live & your occupation. As a result, the cost you will pay is based on your own circumstances ☔️
💷Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage💷
🏠Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority🏠
The Mortgage Social is a trading style of Bubble Finance Hub Limited 🫧
Comentários