Australian millionaire Tim Gurner recently advised prospective first time buyers to stop buying avocado toast and put the money towards a deposit instead.
But who says you have to choose between avocado toast and a mortgage? Not us. We love avocado toast. Instead, try following these five easy tips and maybe you can have the best of both worlds.
1. Check that you definitely can’t afford a mortgage already
Perhaps you’ve already spoken to your bank and been told there’s no suitable mortgages for you. But did you realise that a bank will only offer their own products? Your Move is a mortgage intermediary and can offer thousands of mortgages – including exclusive deals1 – from across the market. So if you speak to Your Move you might discover you’re in a stronger position to buy than you realised.
2. Get a rough idea of how it works with our mortgage calculator
Not really sure how mortgages even work?
- First, work out how much money you’ve saved for a deposit.
- Then have a look at some properties for sale in your area and see if there’s anything in your price range (you will normally need at least 5% of the property price for your deposit).
- Then take a look at our latest mortgage deals to get an idea of typical interest rates and repayment periods
Once you have all this info, you can type it into our repayment calculator and see what your monthly payments would be.
3. Make sure you’re easily approved
A mortgage is a loan, and so having a good credit score is important when you’re applying for a mortgage. Here are some quick and easy steps you can take to improve your rating:
- Register to vote! If your name isn’t on the electoral roll you might find it harder to have your mortgage approved.
- Close any unused credit cards, and cancel any defunct direct debits.
- Pay off debts. It seems obvious, but you really want a clean bill of financial health when you’re applying for a mortgage.
- If they’re not already, make sure all your regular outgoings are paid by direct debit. That way, there’s no chance of missing a payment.
4. Find out about the government’s Help to Buy schemes
Help to Buy is a government backed mortgage scheme which helps first time buyers and existing homeowners purchase a home with as little as 5% deposit2. A Your Move Financial Consultant can tell you more about Help to Buy Equity Scheme mortgages.
You can also find out about a Help to Buy ISA, where the government will add 25% of whatever’s been saved when you come to buy a house3.
5. Make your own avocado toast
No need to head out to a hipster joint to sample this epicurean delight. You can make it at home too! Here’s how.
You will need:
- A soft, ripe avocado (peeled an de-stoned, watch out for ‘avocado hand’)
- Some bread
- In a bowl, smash up the avocado with a fork. Add salt, pepper or even lime juice and chilli if you’re feeling adventurous.
- Toast the bread.
- Spread the avocado on the bread.
Like avocado toast, many things in life are simpler than they’re made out to be. So why not book a mortgage appointment with a Your Move Financial Consultant today?
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Embrace Financial Services usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
1 Because we have access to the First Complete Ltd panel of lenders, from time to time we have access to exclusive deals which are only available to Your Move and other Appointed Representatives of First Complete Ltd.
2 Helptobuy.gov.uk/equity-loan/equity-loans, May 2017.
3 Helptobuy.gov.uk/help-to-buy-isa/how-does-it-work, May 2017. Your Move cannot provide advice on savings and investment products. We recommend seeking the advice of a suitably qualified professional.