Create your own mortgage and start saving

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It is clear to you that you want to buy a house in a few years' time, but you know that the price is far beyond your means. Not only now, but even to ask the bank for a mortgage. We bring you a tip that can improve your financial situation for the future, create your own mortgage.

First step to create your own mortgage

The first thing is to create your own mortgage. How does this work? Basically it consists of paying yourself the instalment, saving every month a fixed amount, as close as possible to the monthly instalment you would have to pay on the loan. It is advisable to use a different bank account and set a payment date. 

At the end of the day, you are setting aside a portion of your income every month. The difference with saving is that most of us don't save as such, but rather systematically save what is left over at the end of the month and then use it to pay for other expenses. As a result, the remainder is usually less than it should be. 

Define the quantity

The most advisable thing to do is to define an instalment as close as possible to the monthly payment that we would have to make to apply for the mortgage to buy the house. For example, for a mortgage of 200,000 euros for 20 years, at a fixed rate of 1.5% APR, the instalment would be around 950 euros.

The closer to that amount the fixed instalment to be saved is, the better. The most important thing, within the possibilities, would be to set a fixed amount and schedule the transfer automatically every month of your own mortgage.

The closer to that amount the lump sum to be saved, the better. The most important thing, if possible, would be to set a fixed amount and schedule the transfer automatically each month of your own mortgage.

So if you know that you want to buy a house, flat or flat in a few years and you don't want to face a big mortgage or be rejected, the best thing to do is to start saving now in order to achieve your goal.

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