Trying to get a mortgage but don't have any deposit? Then you're in for a tough time, because these days it is impossible to get a mortgage unless you have at least a 5% or 10% deposit available.
If you haven't got a deposit then here are a few ideas for how you could try to get one.
Reclaim Payment Protection Insurance
If you have taken out a loan or a credit card in the past few years, there is a chance you may have been sold something called payment protection insurance (PPI). This is where you pay extra each month on top of your loan repayment and in return you get an insurance policy which is supposed to cover your repayments in the event that you lose your job or are unable to work due to an accident or a long term illness.
It has recently some to light that a lot of PPI policies were mis-sold and if you can show that you were mis-sold
payment protection insurance, you may be able to get your premiums refunded and/or get some compensation.
The amount reclaimed could add up to thousands of pounds - enough for a deposit against the mortgage that you want.
If your parents (or grandparents) are feeling particularly generous, or if they just want to get you out from under their roof, then
they may be willing to lend you the money you need for a deposit on your new home.
If they don't have the ready cash available but have plenty of equity tied up in the family home then they may want to consider a
remortgage or an equity release scheme.
Take out a Loan
If you only need a little bit extra to get the size deposit you need and if you are sure you can afford all the repayments, then you might
decide to consider taking out a personal loan to give you enough money for a deposit. Do think carefully
before going down this route though, as you need to be sure it is affordable.
Develop a Second Income Stream
If you can do a little bit of extra work in your spare time you could build up a second income stream
that might mean you can save up enough money for a deposit (this ties in with the next tip too). It's even better if
you can find a second job that can eventually give you a residual passive income - in other words, an ongoing
income that rolls in whether you do any more work or not. To find out about one such opportunity,
click here and watch the video.
Build up Your Savings
Not necessarily the quickest solution, but in many ways the most sensible one. If you don't have enough of a deposit for your mortgage
then maybe you need to wait a little bit longer before you buy somewhere and in the meantime put a bit of money aside each month into a
savings account. You might be surprised at how quickly you manage to save up a reasonable size deposit - so long as you are disciplined about not dipping into your savings whenever you fancy a treat!
Get Cashback When You Shop
If you could get 5% off most things that you bought and if you could put that money towards a deposit, how long do you think it would be before you were in a position to be able to get a mortgage?
This website is provided as an independent marketing website. We are neither a mortgage lender nor an independent financial adviser and, as such, are unable to offer financial advice.
Enquiries generated via this website are passed on to independent financial advisers and mortgage brokers.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This website has been approved by SN Financial Services Limited for the purposes of s. 21 of the Financial Services and Markets Act 2000.
SN Financial Services Limited is authorised and regulated by the Financial Services Authority. Firm Reference number 231014.
This may be checked at www.fsa.gov.uk/register/
