Get to grips with your finances
Posted by siteadmin on Wednesday 9th of November 2022.
Step 3: Get to grips with your finances
Knowing where you're spending your money can help you to prioritise and budget.
Have you ever made a budget planner? Do you know how much you could save?
Take control and make your finances work for you
Delve deep in your spending to clearly see where you're using your money and whether you're using it wisely. Prioritising your spending and cutting back in areas that aren't necessary will set you up in good stead when it comes to lenders accepting your mortgage application.
Do you have credit cards and or loans?
Yes isn't a wrong answer but are you managing them well? No? Then it's time to budget plan!
Interest rates on unsecured loans are typically higher than secure loans. Where you can, pay these loans off as frequently as possible, not only to reduce the interest you pay but to show potential lenders you're a lower risk to them. When spending on your credit cards, are you often taking yourself close to your credit limit? This will also red-flag you to a lender as a high risk as you aren't living within your means. Again, budget plan!
Fill out one our easily laid out budget planners to help you visualise and categorise your spending:
You can look online at your credit scores, or download apps, so you can get to grips with how a lender sees you. The higher your score, the lower risk you are.