How Can First-Time Buyers Increase Their Chances Of Getting A Mortgage?

As a first-time buyer, getting a mortgage can be both daunting and exciting in equal measures. Planning ahead will help gain some control over a process that can be nerve-wracking and complex.

So what can people do to increase their chances of success with first time buyer mortgages?

Save for a decent deposit
If you only do one thing before you apply for your first mortgage, save up as much as you can for a decent deposit. The amount of deposit not only determines whether your application is successful, but also the interest rate charged if you’re offered a loan. Although it’s easier said than done, by saving  a 30%-40% deposit you could pay half the mortgage interest of first-time buyers who can only afford a deposit of 5%-10%. In the long-term it’s very much in your interests to save, save, save if you can.

Increase your credit score
A high credit score is an important part of obtaining a mortgage, as lenders always check  your credit report before offering any type of borrowing. You’ll be at an advantage if you have a couple of credit cards that have been used responsibly, and to which regular payments have been made on time. Lenders also use the electoral register to verify an applicant’s identity, so it’ll speed up this process if you’re already registered.

Be realistic about what you can afford
Being realistic about how much you can afford to pay each month will make sure that you’re not over-stretched financially. Being stressed by monthly payments that can only just be met takes away the joy of owning a first home, so buying a smaller property in the area that you like, or a larger house in a less desirable area is probably a good idea.

Keep checking the mortgage rates and be prepared to act quickly if you’re in a position to move forward, as deals can be withdrawn at short notice. By being aware of lenders’ requirements before you approach them for a mortgage, you’ll stand the best chance of being offered a good deal that you can take advantage of straight away.

Frugal Moving Tips To Reduce The Cost Of Moving House

Moving house is said to be one of the most stressful lifetime events. To prevent it also being one of the most expensive, there are certain things you can do that will reduce the overall cost.

5 Frugal Moving Tips

Plan ahead

Shop around for removal firms and make sure that you get quotes from at least three different movers. It may be possible to negotiate a deal with a firm by choosing to move on a day early in the week, rather than on a Friday which is the busiest day for moving house.

Sort and pack earlymouse-40916_150

Nostalgia tends to set in when you sort through possessions accumulated throughout your life, and it’ll probably take much longer than you think to sort and pack everything. If you pack as much as you can yourself, you’ll save a considerable amount of money, but you need to start packing well in advance of moving day.

De-clutter before moving house

Good removal companies base their prices on the size of van that’s needed, and the manpower required to move your boxes and furniture. To cut down on the cost, purge your possessions and de-clutter well before moving day. You can even make money on this by selling unwanted items at a car boot sale, or on the internet. It’s pointless carrying unwanted items from house to house, and cutting down will also reduce the time it takes to unpack later.

Arrange parking in front of the new property for the movers

Removal firms may charge more if parking is not available directly outside the new property. Having to move large items of furniture further than is necessary is time-consuming, and will probably result in an increased charge. It’s possible to arrange with the local council to keep the space in front of the house clear for the movers on the day, or simply park your own car there.

Move yourself

You can save money by hiring a large van and moving your belongings yourself. If you can call on family and friends to help, this could be a good solution for frugal movers. Deducting the total cost of hiring the van, including petrol and insurance, from the fee charged by professional movers should result in a big saving.

Moving house doesn’t need to be expensive if you do your research and are organised. There’s a wealth of information to help you on the internet, and taking the time to obtain quotes and get details of professional movers or van hire companies will pay off in the long run.