Feel as though you’re going to be stuck renting forever? That doesn’t have to be the case. There are so many ways to improve your current financial situation to help you make that first step on the property ladder.
In this article, we’ll be discussing our top tips and tricks on how to become financially smart, moving away from renting and owning your first home.
Create a plan
Buying your first home, especially while renting, is certainly no easy feat. We understand the difficulties that come with this, especially in the current climate. However, there are so many people in the UK who hope to become homeowners and purchase their own property.
Firstly, you’ll need to work out a plan of how you’re going to make this financially viable. Being strict with yourself and drawing up a budget can help you cut costs and save as much as possible.
If you’re looking to save a deposit, consider setting up a direct debit from your current savings account so that you hardly notice the money coming out of your bank each month.
Build your credit score
When buying a house, it’s important to have a good credit score. You can build your credit score while renting if you make your monthly bill payments on time.
A healthy credit score can make you eligible for good mortgage rates. The better your score, the more options you’ll have available across a variety of financial products in the future.
Patience is key
Saving up a house deposit doesn’t happen overnight. It’s important to be patient and trust the process. It can be difficult seeing others secure their first home while you’re still saving, but everyone has to start somewhere.
Try not to compare yourself to other people’s situations. By staying committed to your savings goals and having a positive attitude, you’ll be able to call yourself a homeowner in no time.
Do your research
Be sure to shop around and look for different types of savings accounts. These can be helpful when saving towards your first home, especially those with high interest rates.
Research the various ISAs available and see how you can get the most out of your savings. For example, Lifetime ISAs allow you to deposit up to £4,000 each year, and the government will add a 25% bonus to your savings, totaling a maximum of £1,000 per year.