• Buying your first home is an exciting and a huge step. It is also one of the most important things you will ever do.

You may be in a position where you have been saving every penny possible; know exactly how much you can afford; and have even seen the property you would love to make your home.  

If so, congratulations! You are ready to take the leap onto the property ladder and apply for your first mortgage.  

But, if you are one of many thousands who seem to be spending all of your wages on rent, utilities, food and household bills, without having any spare savings, buying your first home may feel completely out of the equation.

There are several ways you can start to plan efficiently, and we may be able to help you.

For many, the monthly repayment is not their biggest concern. It is finding the deposit.

Here are just a few ideas and recommendations to set you on your way to buying your first home.

Know how much you need to save for the deposit

  • You can't think about your deposit until you know what level of mortgage you can secure on your income.  We would highly recommend speaking to an expert mortgage advisor about this as you start to think about your first step onto the property ladder.
  • Take your time to research property prices, so you know what you can get for your money.
  • Calculate how much you need to save to cover your deposit on a mortgage for that price range.
  • As a guide, you may need between 5% to 20% on average. Although currently this may vary from lender to lender, which is where our expert mortgage advisor can help you find the best deal for your personal situation.
  • Consider the additional costs of moving such as legal bills, surveys, removals, Stamp Duty (if applicable), etc.
  • All of the above can be easily calculated with our mortgage cost calculator so you can then get on with the more exciting things about buying your first home!

Finding the best Savings Options

  • It might take time to find the best savings options, but is definitely worth it if it means your money can increase whilst sitting in an account.
  • Options include easy access accounts, regular savings accounts, higher interest savings accounts, and a Lifetime ISA (N.B a Lifetime ISA can mainly be used for the end purpose of house buying).
  • ‘Bank of Mum and Dad’ if you are fortunate enough to be able to count on them! With lending criteria changing all the time amongst mortgage providers, we can keep you updated on current restrictions and maximum 'gifted' deposits.   

Set your Budget and Timescale for Buying your First Home

  • As with everything in life, if you do not know what you want and by when, your goals will never be achieved.  
  • Set a realistic budget and stick to it!
  • By setting up a regular payday payment into your savings account, you can work out your timescale based on what you can afford to put aside.
  • You may need to reduce your outgoings to increase your savings - gym membership; subscriptions; personal expenses; going out; look at swapping mobile/broadband/utilities providers to opt for the most efficient tariffs; shop for supermarket own brands rather than the more expensive items.
  • You could also increase your income - overtime or additional work; cash back sites and offers; sell items of clothing, games, books, etc that have sat around unused. Reputable sites will give you instant cash.

Other Cost Savings

  • You might have moved out of your family home a few years ago. But it is becoming more ‘accepted’ now for the fledglings to return to the nest, particularly after University, or a few years of living on their own. You may need to swallow your pride, but it will be worth it when you see how much more you can save towards your dream home!
  • If you are renting now, why not share with a friend or partner, to cut your individual expenses?
  • Downsize if you can. It could cut your outgoings over a longer term, allowing you to save in the meantime.

Splitting the Cost

  • Provided you calculate and split the costs fairly, buying your first home with a friend or partner will bring your dream closer to reality.
  • Not only splitting the deposit, but it could also give you more options when it comes to finding the right mortgage product.
  • Two incomes to cover the monthly repayments and potentially your monthly outgoings too, will remove some of the pressure from a single income alone, and could make the whole process much more enjoyable.

These are all options which could help when assessing your mortgage affordability. And this is something that we can assist you with.

Why using Simpson Financial Services will ease the pressure of buying your first home   

Finding the right mortgage can be overwhelming. There are many products available, but you might not know which is going to be the most suitable for you.  

Our experts here at Simpson Financial Services can find the best deals across the entire market, not just limited to certain providers. In fact, we are often able to access exclusive products which are only available through mortgage brokers.

We understand that life may not always be straightforward. So we consider your financial history, good or bad, and take all circumstances into account.  

Shopping around for a mortgage will be something you don't need to worry about, because we do that for you. We liaise with the lender on your behalf and make sure you complete the forms with all relevant and correct documentation. No time wasted in going back and forth, which is often what puts people off the process in the first place.

We are here to guide you through every step from finding the most suitable mortgage product for you, calculating your deposit and even down to creating a budget which is achievable and realistic to help you through buying your first home.

Call us on 0800 6342 111 to arrange your free initial meeting with one of our first-time buyer mortgage broker specialists.