If you are a first time buyer looking to apply for a mortgage, it is important to make a realistic assessment of your finances. This will help you to understand how much you can afford to repay on your mortgage each month, and it is also an opportunity to boost your credit score, which will give you more chance of securing a good rate.
A budget will also help you meet any debt repayments, or save towards a mortgage. The key to putting together an effective budget is to avoid making estimates whenever possible, and look at your bank statements and receipts dating back from at least three months. Where you do have to guess, over rather than underestimate.
The main aim of your budget should always to avoid spending more than you earn, and preferably to have some surplus cash at the end of the month. If you need to cut back, look at your non-essential spending first. Could you cancel a subscription to a TV streaming channel, or eat out less, or buy fewer new clothes, for example?
Next, look at your essential spending, on utility bills, food, insurance, and so on. For services such as broadband, insurance, and energy, you have the option of shopping around for cheaper deals, so this may be worth doing.
Look around for deals when making your weekly supermarket shop, such as discounted food that is close to its sell by date. It often works out cheaper to buy goods with a long shelf life in larger quantities, such as pasta and cereals.
Finally, don’t forget to include those extras that crop up, such as birthday treats, holidays, or car repair costs, and allow some margin for them in your budget.
If you are looking for a mortgage broker for defaults, please get in touch today.
Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
We may receive commission that will vary depending on the lender, product or permissible factors, The nature of any commission model will be confirmed to you before you proceed. Create Finance Ltd are a credit broker, not a lender.