Simple Steps to Increase Mortgage Affordability for First Time Buyers

Simple Steps to Increase Mortgage Affordability for First Time Buyers

Every young person dreams of one day moving out on their own and owning a house. Some ultimately end up renting at least, but most prefer the stability and control which come with ownership. The goal of owning has become tougher to achieve in the last few decades with lending criteria changes and high prices. These challenges have slowed the number of first time buyers and made ownership more of a delay than a choice after reaching our twentys. Mortgage affordability is now a hot term describing the ability young people have to buy or not to buy. Here are some tips on how to increase the likelihood of ownership from housing specialists.

First, put together a savings scheme which will maximise the amount able to be placed on a deposit. House deposits have increased over time and more often than not they sit at an intimidating size. Save and then save some more before putting down a deposit. One housing experts suggests moving up in deposit amounts by 5% increments.

Next, get all personal documents in order. This includes all documents related to finances and otherwise. Make sure all documents are updated to marital status, married name, and even home address. These details seem insignificant, but can quickly lead to an application being denied.

Third, make sure the sought after mortgage is able to be paid on in advance and overpayment is not penalised. This will make it possible to gain traction on the mortgage with early payments as well as potentially paying off the property before the term of the loan ends. This will save massive amounts in interest payments.

Lastly, focus on obtaining a fixed rate mortgage. This means the interest rate will be locked in and payment amount each month will be fixed. Controlling monthly outgoings will help with the family budget.

Housing specialists agree, exercising these suggestions will help with mortgage affordability and make it possible to afford a better property, faster.  

Obligation Free Remortgage Quotations

Get a Quote »