If you are looking to purchase a home on a single salary, either as a one income family or as a single applicant, you might think that your options are limited. Whilst you may need to work harder to get finances in place, with planning preparations you'll put yourself in the best possible position to get into your new home.
Here are our top tips for buying your own home.
Saving for your first home can seem like a goal out of reach, especially if you are buying on your own, but stick with it as it will pay off in the end.
The bigger your deposit, the more attractive your business will be to lenders. The more equity that you have, the lower risk you represent. A larger deposit also means that you will have a lower loan to value, which in turn will give you access to a wider variety of mortgage deals.
Be realistic about your borrowing
It’s easy to get carried away when it comes to buying goods, but when it comes to buying a property it really is important to make sure that you consider your limit and stick to it.
Have an honest look at your budget, and consider how much you can comfortably pay each month without forgoing your other important expenses.
A lender will advise you regarding the maximum amount you can actually afford to borrow, it doesn’t mean you actually need to borrow that much. Give yourself some flexibility and be realistic.
Do your homework
Taking advice will almost certainly be helpful unless you are very experienced in financial matters in general, and mortgages more specifically. However, it is worth spending some time doing your research to get a basic understanding of the mortgage and the types of mortgages that are available.
Clear other debt
A lender will establish your affordability based on a number of factors including your committed monthly expenditure. If you can reduce this amount by clearing unnecessary debt, such as an outstanding credit card balance, you’ll improve your eligibility.
As you are buying a property with one income, it is important to make sure you have income protection in place to ensure that should something happen to you or your income, you can carry on with your repayments.
Use a mortgage broker
Regardless of whether you are single or not, speaking to a mortgage broker means that you have access to expert advice for mortgages, as well as any related life insurance, payment protection and even buildings and contents insurance.
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