Managing your finances can be an empowering and fulfilling experience when you approach it with the right mindset. With a few simple steps, you can take control of your finances and build a secure future for yourself.
Here are our top five tips to help you on your journey to get mortgage ready.
Evaluate your finances
Evaluating your current situation is a good place to start. Make note of your monthly income, your outgoings, spending habits, and any debts you’ve accumulated. Having a full picture of your financial situation can help you organise your spending by categorising your expenses into essentials and non-essentials. These can include household bills, debt repayments, hobbies, clothes, and streaming subscriptions.
Create a budget
Budgeting is a vital step in managing your finances. It can help you work out how much you can contribute to savings and paying off debts. To get started, figure out what you can realistically afford, then choose a budgeting method that works best for you.
Separating your outgoings into essential and non-essential categories can show you where you can cut back and save money. This might include cancelling subscriptions you no longer use or reducing the amount of clothes you buy.
Creating a budget with specific saving goals in mind will make it easier for you to see what money you have left over after paying your bills, savings, and debt repayments.
Shopping around for deals on everyday items can help save you money. One way to do this is by checking for discounts and special offers at your local supermarket or favourite online retailers. For larger purchases, you can also take advantage of events like Black Friday to score deals on expensive electronics and home appliances.
When it comes to your utilities, there are many comparison sites available that can help you evaluate different providers and their offerings. By doing your research, you may find that you can save money by switching to a different provider or plan. This could help you make the most of your money and stretch your budget further.
Set savings goals
It’s important to identify your reasons for saving and visualise what it would feel like to achieve your goals. By staying focused on these goals, you may find it easier to resist impulse purchases and unnecessary expenses.
Another important savings goal is to establish an emergency fund, which typically consists of three months' worth of income or expenses. This fund can be a lifesaver in the event of unexpected expenses, allowing you to avoid dipping into your other savings. Building up your savings may require patience and dedication, but with regular monitoring, you can steadily make progress towards your goals.
Whether it's a new car, a dream vacation, a deposit for your first home, or a renovation project, having concrete savings goals can help you prioritise your finances both in the short and long term.
Have a play around with our borrowing calculator, designed to help you work out how much you borrow, which gets you one step closer to owning your own home.
Speak to a mortgage adviser
Our advisers are available to provide you with expert mortgage advice to help you get ready to buy your home. Get in contact today to find out how we can support you.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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 0.3% of the amount borrowed.