How to save a deposit for buying a property.
If you are thinking about buying a property, you will need at least 5% of the property’s value to get a mortgage. So how do you go about getting the deposit together?
Before you start to save a deposit, make sure you know how much you can afford to spend on a property. You will then have an idea of how much you will need to save.
It may not be easy and will probably involve making some sacrifices, just keep thinking of the long term goal of becoming a homeowner.
First off, you should set a budget and stick to it, sit down and look at where your money is being spent and see if you can cut back. Filter out the things that are not a necessity, work out how much you would save if you lived without them for 6 months. Also, look at your bills and see if you can switch suppliers and save any money there.
It is a catch 22 but stop renting! See if you can move back in with your parents, a family member or a friend. If that is not an option, perhaps look to move to a shared house rather than renting on your own. Or if you have a spare room, you could think about getting a lodger. You will need to check with your landlord first.
Bank of mum and dad is always an option, more people are relying on help form their parents to raise a deposit. You would need to make sure you understand and agree on the terms for the loan, you wouldn’t want to fall out with your parents over money.
Keep an eye out for new mortgage products. The market is constantly changing so make sure you know what is out there. With more lending restrictions being brought in, lenders are always looking for ways to get customers through the door.
Finally, look at government schemes, over the last few years there have been new schemes brought in aimed at helping people to buy a home. It is definitely worth taking a look to see if you qualify for help from the government.
It may seem like hard work but remember to keep that end goal in mind, think about how you will feel when you own your own home.
We offer a range of services to the local community, if you need property advice our experienced team will be happy to assist you.
You can contact one of our offices by visiting our website here.