How to budget and save a deposit

It’s a daunting thought isn’t it, saving all that money for a deposit for your first home! Lots of people would also have you believe you need more than you actually do as well. For now, let’s say you need at least 5% of the price of a house, the more the better though 10% or even 15% will have a noticeable effect on interest rates and that will bring your monthly cost down too. There’s more on that here in a video you might find useful.

So how do we get started and how much shall we aim for? Well of course this depends on your situation, how much you earn, what sort of house would you like, do you rent at the moment? All of this will affect how easy it is to save, for example living with your family, whilst maybe not your preferred choice, will surely mean you can save loads! But paying as much as your new mortgage on rent will make it really hard to save at all.

It also depends how much you really want this? A question only you will know but the more you want it the harder you will work for it. Here is the challenge from me… Save! Save and then save some more! How much can you save each month? What else can you cut down to get you there? Let’s think about that for a moment, do you need Sky right now? How much is that car every month? Could you cut down on that for a while? Set yourself a target and make it happen each month. You may even be surprised how quickly you can get that 5% together. Trust me, those other things can come later on, when you are in that house!

So let’s picture the scene, the day arrives when you put that extra bit of money in your savings account and you’re there, you have enough, awesome! But wait… what else do we need to pay for now? Not much don’t worry but there are a few more costs to consider, solicitors, stamp duty (first time buyers don’t pay this up to £300k) so we are going to need an extra couple of thousand, sorry! But it’s the truth!

Ok so we have the deposit, we have the fees, we know how much you can borrow, you can find a house and eventually get the keys! Woohoo! But then what? What do we need to budget for now? Well, we have the mortgage obviously, that’s going to be the big one. But then we have the really important bit, what happens if something goes wrong? What if you are ill? That income that has helped you save up and is now paying for the mortgage is at risk! We need to protect it. We need to make sure if anything goes wrong you don’t lose the house you worked so hard for. So, some budget is definitely needed for that – I would usually allow about 10% of your mortgage here, solely for protection. Then you have your other bills, Council Tax, Gas, Electric, water, but then really its just your living costs, your food and travel. You should be used to all that saving by now so all we are doing here really is spending the same amount!

So, there you have it, that is what we need to do. Hard work, yes. Possibly takes a long time, yes. Worth every moment, absolutely! That feeling of getting the keys to your very own house, you just can’t beat it.

 

Good luck! & Don’t forget you can see more of our tips and advice on our Facebook page.

The latest from Instagram

An extra gift in your Christmas shopping could mean the world to a child or young person this year.

We know that many more people will find this Christmas harder financially so more children could go without.

We've been in touch with the Salvation Army to collect gifts on their behalf. We will then drop them off to the Banbury centre who will distribute them locally this Christmas.

Unwrapped gifts must be with us by Friday 10th December. They are in particular need of gifts suitable for 16-18 year olds, things like; games, gloves, socks, toiletries, mugs, bags, stationary, headphones etc.

THANK YOU to everyone who has dropped something in so far - you're amazing!
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Black glasses for Black Friday ⚫️🤓

So, #blackfriday

Love it or hate it?

Personally I can't stand it. It seems to me it brings out the worst in some people, all trying to get something bigger or better. I remember the scenes on the first black Friday a few years ago. People literally hurting each other to get to a product off the shelves.

I wonder if they still have those items now?

It is my belief that we should always be savvy about getting the very best out of our money, every day of the year.

When remortgaging you might ask yourself, is it worth the hassle of moving lenders?

The answer is YES.

In fact, a saving of just 0.5% on a mortgage of £250,000 would be around £62 per month difference. That is about £3720 over a 5 year fixed term!* A substantial amount that you could and would probably want to put to better use.

I believe this to be a better way of getting good value for money and thinking about your future. Rather than buying something on a whim just because it's Black Friday.

So today, on Black Friday, check when your mortgage rate comes to an end and get in touch to see if I could find you a better fit.

*Figures based on a mortgage of £250,000 over 25 years at 1.5% verses 2% to the nearest whole pound.

**Your home may be repossessed if you do not keep up repayments on your mortgage.
Our typical fee for arranging a mortgage is £500 but this may vary on the complexity of your individual case.
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If you're thinking of a move next year, any time next year, just be warned it could be a busy one.

Many moves and plans have been put on hold since the pandemic started. I predict that next year is going to be a recovery year. Recovery for our families, our plans and our searches for the next perfect home.

If this is you, I urge you to put in some of the background work now so that when you think you're ready, you're already on the right track. One step ahead.

One of the very first things you can do is get an up to date valuation of your home. If you're local to north Oxfordshire, my agency Maxwells Estate Agent can help you with this - at your pace.

If you're not local, I can help you with a remote valuation to get you started and can recommend estate agents best suited to you and your home.

Get in touch 01295 981300

**Your home may be repossessed if you do not keep up repayments on your mortgage.
Our typical fee for arranging a mortgage is £500 but this may vary on the complexity of your individual case.
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Next year is going to be a BIG year.

I'm actually obsessed with looking forward. So much so, Julie often tells me that I need to slow down and take in what's going on right now and be more present.

Which is why we make such a good team I guess. Her yogi outlook on life and my dreamer head.

But my brain isn't wired that way - I'm always planning, considering, thinking about what the next challenge is going to be.

I've got so much planned for my businesses (stay tuned) and for my family (that might actually be more Julie's doing) in 2022.

Next year will be a big year for many of my clients too as many of them are going to come to the end of their fixed rate. There will be more conversations about home improvements, projects, moving plans and more. I can't wait to start helping them on putting their plans into action.

Check if your mortgage rate is coming to an end next year. If it is, start thinking about what your plans are. Is it to pay off a lump sum, is it to get working on that extension or finally convert the loft into a home office?

Whatever your plans, consider how you might make them a reality.

Take a look at my blog for more on remortgaging next year - link in the bio.

**Your home may be repossessed if you do not keep up repayments on your mortgage.
Our typical fee for arranging a mortgage is £500 but this may vary on the complexity of your individual case.
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Refer a friend to us at Vantage Mortgages and receive a £50 Amazon voucher - that would be nice for some Christmas shopping right?! 🛍 📦
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🎅 There is no limit to how many people you refer - £50 for each referral.
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🎅 You'll receive your voucher when your friend submits their mortgage application.
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Do you know someone who would benefit from our expertise? Tag them!
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*Your home may be repossessed if you do not keep up repayments on your mortgage. Our typical fee for arranging a mortgage is £500.
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Some children will struggle to be given much at all this Christmas.
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We are opening up our office as a drop off point for Christmas gifts for children and young people. They will then be taken to the salvation army for distribution.
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So whilst you're out and about shopping, if you felt you could buy an extra gift for a child, we know it would be so very much appreciated.
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The #salvationarmy have told us it's gifts for both boys and girls aged 16-18 that they tend to struggle for. We've got started with some toiletries gift sets.
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We know that these are incredibly difficult times for some of us financially right now so whatever you can afford will be absolutely amazing.
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If you'd like to drop a gift to us to pass on, however big or small, please get it to our office, 48 High Street Banbury BEFORE 10th December and make sure it is unwrapped. And we'll be delighted to pass it on for you.
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#helpatchristmas #salvationarmyuk #christmascharity
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We are not a bank or building society.

We are family owned and independent mortgage and protection advisers.

And we THRIVE on our clients spreading the word about our expertise and service.

We have a little favour to ask...

Consider the following:

When you decide to use a service for a big life decision (an estate agent, a mortgage adviser, health care) how do you make your decision?

It's probably no surprise that most people make their choice based on other people's experience. This could be a conversation in person with a friend or family member, a recommendation from a colleague or online reviews.

Hearing positive comments and feedback from others helps us to feel secure in our decision making, this is particularly important when deciding who to use when arranging your mortgage. For a lot of us, this will be one of the largest financial commitments you will ever make.

We know it seems everyone is after a review for something these days but for a service like ours, your words could be the beginning of another client's journey with us.

(We can't advertise on TV like national companies. I'm not sure we'd want to!)

It's now easier than ever for you to leave us a review, taking just minutes to do. Please consider telling others about your experience with us as we strive to work hard for our clients and aim to get the very best result possible for them.

Here's the link: https://review.vantage-mortgages.co.uk

And keep your eyes peeled for how we will reward our clients who spread the love... 💗 (details are coming soon)

#mortgagebroker #mortgagehelpers #localbusinessuk

Your home may be repossessed if you do not keep up repayments on your mortgage.
Our typical fee for arranging a mortgage is £500 but this may vary on the complexity of your individual case.
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So you may be thinking, doesn’t it cost a lot to change mortgage lenders?

Absolutely not! In fact most of the time for a simple swap it doesn’t cost anything at all. Most lenders will provide a free solicitor to handle the change over and they will usually cover the cost of the valuation too.

This is the point when we will find out about your situation, your income, outgoings and any other considerations that may need to be taken into account, like your credit history before we give advice on what to do next.

See more about this in my newest blog - link in the bio.

#remortgage #mortgagetips #mortgagehelpers #proudtobeprimis #mortgagelender #mortgagebrokers #oxfordshire

**Your home may be repossessed if you do not keep up repayments on your mortgage.
Our typical fee for arranging a mortgage is £500 but this may vary on the complexity of your individual case.
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Say cheese 🧀 😄 Our faces are aching but what a lovely morning having some updated team photos taken. @katkaholliday made everyone feel at ease - can't wait to see the pics!
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Dotty was a dream to photograph today 😍😍 I think we may have to do a Dotty calendar for Christmas or something 🤔😀
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#mortgagehelp #mortgagehelpers #remortgage #officedogsofinstagram #officephotos #teampics #saycheese📸
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Can Dotty get some love for wearing her poppy with pride today?
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#poppywithpride #lestweforget🌹 #officedogsofinstagram
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