Mortgage payments eat up 39% of first-time buyers’ salary – ‘most vulnerable’ | Personal Finance | Finance

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However, he continued: “It’s a difficult situation, but there may be some steps that can be taken to help people fulfil their homeownership dreams, even in the current financial climate.”

Mr Leonard provided five key tips for potential first-time buyers to consider before taking the plunge into the property market.

Check credit scores

To increase the chances of being approved for a mortgage, Mr Leonard said people must keep on top of their credit score.

He said: “Having a high credit score indicates a good track record of repaying debts on time. There are many online tools and services you can use to check your credit scores, such as Equifax and Experian.”

Work out what can be afforded

Before the search for a first home begins, it’s important for people to crunch the numbers and work out how much they might be able to spend on a house, as well as the areas where they can afford to buy.

Mr Leonard said: “A simple way of doing this is to use a mortgage calculator, where you’ll usually be asked about your income, expenditure and deposit size, among other things. Remember also that buying a house means you’ll need to cover the cost of surveying, legal fees, and then the move itself.”

Set up a budget and saving goals

Once this has been established, Mr Leonard said it can be helpful to set a realistic budget and saving goals, as a way to work out how much can be saved each month towards a deposit.

He said: “Budgeting can also help you identify where you can adjust your spending to enable you to save more money. Depending on what bank you use, some of their mobile apps might have built-in money-saving tools that can help with managing your money. It could be helpful to do some research and find a separate budgeting tool that works best for you.”

Boost savings

A Lifetime ISA is designed to help first-time buyers save for a first home costing up to a maximum of £450,000. The ISA can be opened at any age between 18 and 40 and people can continue adding to it until they reach 50.

Author: Dhanraj7978

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