Delete your ex, get Netflix & join the caravan club – how to buy a house when you’re skint

FEBRUARY is the best month to sell a house, says new research.

But can cash-strapped people in Britain actually afford to buy one?

Finance expert Gemma Bird, known as Money Mum on Instagram, tells how everyone can get a foot on the housing ladder – even when you're skintCredit: Olivia West - Commissioned by The Sun

There are some unexpected ways that you can build up your bank account if you're looking to buy a homeCredit: Getty

Yes, says finance expert Gemma Bird, aka Money Mum, who bought three homes on a £25,000 salary and paid off her mortgage before she turned 40.

The money-saving influencer and mum-of-two says: “Whether you’ve got a tenner or ten grand, everyone deserves to have a home of their own.

“You just need the right tips and tricks to build up your bank account and buy what you can afford.

“I can help you there.”

GET THE CRUNCH ON CREDIT SCORES

DELETE YOUR EX: Have you split up with your other half? Make sure you cut ties with their cash, too.

“Don’t let your ex’s money troubles affect your credit history,” says Gemma.

“Remove yourself from joint bank accounts, pay off any joint loans and contact credit reference agencies — TransUnion, Equifax and Experian — for a ‘notice of disassociation’.

“It removes your name from any individual debt they might have and keeps your credit score squeaky clean.”

TRIPLE-CHECK YOUR ADDRESS: Lived in more than one rented home?

Make sure that your address is correct on all your bills and subscriptions.

“You might have an old bank card you don’t use that’s still registered to an old address — and that’s bad news for your credit rating,” says Gemma.

“If it seems like you’re living in different places, lenders might think you’re having trouble paying rent and your score will plummet.”

REGISTER TO VOTE: Signed up to cast your vote? If not, you could be just a whisker away from being refused a mortgage.

“If you’re not registered on the electoral roll, lenders could have trouble verifying your identity,” says Gemma.

“People have had their mortgages rejected because of this, so make sure to sign up right now or you will find yourself in a sticky situation with your lender.”

DITCH YOUR JOINT ACCOUNT: If you are buying with a friend or a family member, or your partner, keep your money separate, especially if they are in debt.

Gemma says: “If you share a bank account and one of you owes money, both of you will have bad credit.

“It can take months to make it good again, so if you are in any doubt about your partner’s finances, take good care of your own.”

PAY INSURANCE IN FULL: Chipping away at your insurance bills each month — car or contents, for example — instead of paying the full cost in one go will negatively affect your credit score.

Gemma says: “It’s always worth paying up front for insurance if you can, to make you more attractive to lenders.

“Besides, some providers charge more if you pay in instalments, which won’t help your savings pot grow.”

MIND YOUR MORTGAGE

SNIFF OUT A SWEET DEAL: Choosing the best mortgage is a minefield for first-time buyers, so do not pick one too quickly.

“Shop around instead of picking the first mortgage you find,” says Gemma.

“For about £200, a good broker will scour the market for the best deal and offer advice about fixed rate, variable and interest-only loans.

“Talk to your bank — if you are a loyal customer, there may be a sweet deal for you — and don’t discount smaller lenders who may have lower interest rates and fewer fees.

“Avoid applying repeatedly for mortgages if you get turned down — your credit rating will get a real kick.”

PUT THOSE BABY PLANS ON HOLD: Trying for a baby or switching jobs can be exciting, but it is not attractive to banks.

Stay “safe” in the eyes of your lender until the deal is done.

Gemma says: “If you are self-employed, have less than six months on your job contract or you’re having a baby, lenders will tend to zip their purses shut.

“In their eyes, you could run out of money and not pay your mortgage, and that’s a huge red flag.

“Leave the big life changes until after your home is your own.”

Paying for a streaming service could be used as proof that you can afford a mortgageCredit: Rex Features

GET A NETFLIX SUBSCRIPTION: Pay for Netflix or Disney+ subscriptions? You are in one bank’s good books.

“First-time buyers can now use direct debits for streaming services as proof that they can afford a mortgage,” says Gemma.

“Leeds Building Society accepts them and more banks could follow in the future — provided you’ve paid for your services on time.”

BUY WITH A BUDDY: Not everyone buys a house with their better half.

Investing in bricks with a friend or family member is much cheaper than going it alone.

Gemma says: “I got my first mortgage with my dad and split the profits 50/50 when we sold.

“Investing with someone you trust can save you huge sums of money.

“But remember, relationships can go sour. Get your solicitor to write up a contract so you don’t end up out of pocket if the worst happens.”

PICKING PROPERTY

You could look into getting a good deal on a caravan — they can rocket in value in the right areasCredit: Alamy

DO NOT STICK TO BRICKS AND MORTAR: Think outside the box — not everyone lives in a brick-built house. Different materials can mean a better price.

Gemma says: “You might turn your nose up, but a static caravan is still a home and they can rocket in value in the right areas, such as Devon and Dorset.

“It’s easier to get a deal on a caravan worth £70,000 than a house worth £300,000.

“You will need to pay a pitch fee — like ground rent on a flat — but your loan should be much lower.”

BUY IN A BARGAIN AREA: Be realistic about where you want to live.

A city-centre penthouse in London is a pipe dream, but a cute two-bed cottage outside the capital could tick all the boxes.

“Burnley, Aberdeen, County Durham and Hartlepool are some of the most affordable places to buy in Britain, where the average home costs £115,000 to £120,000,” says Gemma.

“Buy within your means, not according to your burning desires.”

KEEP AN EYE ON UNLOVED HOMES: We are all drawn to plush, pricey properties, but a low budget means lowering the bar.

Gemma says: “Ask local estate agents to send you a list of all their recently reduced properties.

“Keep an eye on houses lingering on the market, too. If the vendor is itching to sell, they might cut the price down for you.”

SAVE THE CLEVER WAY

GET SET TO DOUBLE YOUR MONEY: Saving does not have to leave you skint. If you are on Universal or Working Tax Credit, you could use the Help To Save scheme.

“If you claim these credits and earn £722.45 or more a month, you can apply,” says Gemma.

“Save up to £50 a month and you get a bonus of 50p for every £1 you save up to £1,200 over four years.

“You don’t have to pay money every month and at the end of the four-year period, you could see your cash double to £2,400.”

BE AN AUTO SAVER: Forgetful folk (and shopaholics) can build up bumper savings without even noticing, and it is all down to AI.

Gemma says: “Automatic savings apps such as Plum and Chip use AI software to track your spending habits, so you are never left short of cash.

“The apps take out a couple of pounds a day with options such as rounding up to the nearest pound. Interest rates vary, so shop around for the best deal.”

MAKE A SACRIFICE: Whether it is your favourite Chinese takeaway or daily coffee fix, you will need to sacrifice one of your regular treats when saving for a house.