How to Save for a Mortgage Even on a Low Income

Jun 3, 2021 | Lifestyle | 0 comments

When you have a low income, it can seem as though you’ll never be able to get out of the living paycheck to paycheck lifestyle. Let alone leaving behind the world of renting or sharing a place with roommates.

Getting a house? Impossible! Says who?
Sure, it may take a little more time than somebody who is handed a big fat pile of cash to go toward their mortgage downpayment, but there are some things you can do to build up your savings enough to be able to eventually own your own house- even if you think you don’t earn enough money. 

Soon enough you’ll be able to get yourself on a website such as MortgageQuote.com to have the help you need to secure a mortgage to buy your first home. 

Here are some tips for you to be able to use some of your income to save towards your mortgage.

1. Get a high-interest savings account

The first step is to speak with your chosen bank about getting a high-interest savings account. These accounts effectively give you free money for having money in them and using them to build up your savings. Therefore, helping you to reach your goal a lot quicker. 

If you’ve been with a bank for a particular amount of time, you should be able to come up with some type of deal so that you can boost your savings.

2. Research schemes

Depending on where you live or where you’re looking to buy, there are plenty of schemes out there for people looking to buy their first homes. These include things like shared ownership where you part buy and part rent the rest. The longer you pay off the mortgage, the longer you can save towards buying out the other party that owns the rest of your property.

There may also be government incentives in some places where they support people financially who are looking to take their first steps on the property ladder.

3. Improve your credit score

You’re very unlikely to be offered a decent mortgage if you have a poor credit rating. The only way you can improve your credit rating is by getting credit in the first place. Even if that means taking out a credit card with a very low limit and using that to pay a monthly bill that then gets paid off once you get your salary, you’re going to be able to have a credit file open and slowly start to build your credit that way.

4. Live the leanest

It won’t be forever, but the less money you spend–the more you can save towards your deposit. If that means living without certain luxuries for a period then it will be worth it in the long run. Spend enough to keep a roof over your head and food on the table, but think of places you can make cutbacks. It may mean having to sacrifice your morning takeout coffee or trip to the movies, but the sooner you save, the closer your dream of owning a house will come.

best,

– a contributed post

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