As the credit crunch affects financial services worldwide, many are finding it increasingly difficult to manage their money. Spiralling costs of food, fuel and uncertainty in the housing market have led to hard times for consumers and lenders alike.
First-time buyers are now finding it more difficult to get on the housing ladder, as the cost of mortgages has seen many priced out of getting their first properties, meaning many who are looking to get their foot on the first rung of the housing ladder face an uphill struggle.
Even those who have decided to emigrate to somewhere sunnier – such as Spain and Greece – have seen rising costs in their overseas mortgages.
For those looking to get their foot on the first rung of the property ladder, the process can be long and difficult. However, there are a few things you can do to try and increase your chances of securing a decision in an unstable market:
* Check your credit report – identify any discrepancies, including unpaid bills and other debts such as credit cards and loans, prioritise how you are going to reduce your debt level and put the plan into action.
By taking some time to evaluate your level of debt and get your finances in check, you could give yourself a better chance of becoming approved for that all-important mortgage.
* Make sure you save
By saving through a high-interest account and putting a little away each month, you can help yourself to build up a deposit in case of any developments in the housing market.
* Consider sharing
Making the leap from renting to owning a house can be a daunting process, but buying with another person can help reduce your own costs. There are also a number of schemes that will offer additional discounts for certain situations.
* Shop around
Don’t jump into the first deal you come across; be sure to contact a number of companies and brokers that cover the entirety of the mortgage market before selecting the deal that’s right for you.
* Don’t leave it too late
Many are choosing to put off the buying process in case of any developments in the housing market, but with conditions as they are, any changes are likely to be small and any deals that emerge as a result are likely to be snapped up quickly.
Whilst the era of the 100% and 125% mortgage may be at an end, there are still a number of high-rate mortgages available – however these are likely to be fiercely contested, so it’s always best to do your research before committing to such deals.
