Sometimes, many people are deterred from even thinking about buying property just because they feel and know that they have a low income. The income they have is often just enough for bare expenses, and owning property is considered a far-fetched dream. But it doesn’t have to be this way – if you’re tired of renting and are focused and determined enough to have your own piece of property no matter what it takes, there are ways to achieve your dream. Here’s your essential guide to affording a mortgage on a lower income.
Wait until you get a big break
Of course, you can always wait until you get that break you need – namely, get a higher salary. But this may take some time and a lot of patience. Alternatively, you can look for another job or other career prospects, but this can also affect your mortgage application as lenders will often look at your job stability or how long you have stayed in your current job when you apply for a mortgage. If you have the time or are still young, this may be a viable option, however.
Look for something less expensive
Another alternative would be to look for a property which is more in line with your budget – a less expensive property that you may be more likely to afford. This may mean making a compromise on your dream property when it comes to the property’s size (settling for 2 bedrooms, for instance, rather than 3 bedrooms), the property’s location, and more – weigh your options and decide whether you really want to go for something less than or different from what you wanted.
Go for longer terms
You have yet another option when it comes to affording a mortgage – you can choose to go for longer-term mortgages which can reduce your repayment amount every month. It has become relatively common for people to go for even 40 year mortgages. Bear in mind, however, that a longer term would often mean paying higher overall.
Save, save, save
The experts in mortgages from Mortgage Wise would recommend having a higher deposit so you can have a better mortgage deal. But in order to have a higher deposit, you would need to save. The best and often easiest way to save money would be to cut down on your expenses. Perhaps you can do without that expensive cup of coffee every morning and make your own at home. Or you can avoid going out too often or make more home-cooked meals. There are many ways you can save on expenses; all you have to do is assess what you spend on and make some determined decisions.
Find a less expensive mortgage
You can also try looking for a less expensive mortgage; if the mortgage has a lower rate of interest, repaying the mortgage every month can be easier.