16 Sep Tips For Saving A Contractor Mortgage Deposit
When it comes to mortgages, borrowers need to be prepared for a significant financial commitment. Not only does a mortgage require monthly repayments for a long period of time, you will also need to save up a large deposit in order to obtain the right mortgage for you. Most contractor mortgages will need at least a 10% deposit, although the right contractor mortgage specialist can help you to find a lower one. In many cases it is better to wait and save a larger deposit as this will naturally bring down the interest rate as well as lowering the amount of time you will be paying off the mortgage. Here are some tips which will help you to save the largest deposit possible.
1. Make A Budget
No one likes the word ‘budget’, with its connotations of restriction and hardship, but actually putting together a budget can help you to save without feeling that you are going without. When you put together a budget you should make sure that you have put down all of your necessary outgoings first. You will then be able to see what you are spending each month on unnecessary luxuries and be able to work out what you can live without. If you spend a lot of money on going out to eat each month, for example, you could restrict this to a monthly treat and put the money saved into your mortgage deposit fund.
2. Choose The Right Jobs
As a contractor your income will be more flexible. You may be working with clients who do not pay very well because you have been working with them for a long time. When it comes to saving for your mortgage it is time to become more ruthless with your finances. Drop any jobs which take up time and don’t pay well in favour of longer term projects which bring in a living wage. This will help you to keep a regular income coming in each month and thus putting some money aside in savings.
3. Look Into Offset Mortgages
Speaking to a contractor mortgage specialist such as AMS Mortgages can help you to find more flexible mortgages such as offset mortgages. With an offset mortgage you can put down a smaller deposit whilst still making savings on your mortgage amount. An offset mortgage takes what you already have in savings and removes this from the interest on your loan. it allows you to build up your savings slowly while you enjoy a lower repayment rate and a more secure mortgage.