How To Save More Money For Your Deposit
With the cost of living being so high, it can be difficult for those saving up a deposit for their first home. For most first-time buyers, it can take an average of 4.6 years to save up enough money to put down on their first home.
However, growing your deposit a lot quicker is possible by following our top tips for saving up for your down payment. Saving up for your deposit does involve carefully counting your pennies for a while, but it will be worth it in the end because you can save what you need faster to buy the home of your dreams.
Compare the best savings products
It would help if you shopped around for the best savings account to grow your deposit. Most high street banks offer savings accounts with low rates, but these rates can vary significantly between banks.
It is worth looking at the small print and comparing these accounts to find the most suitable one for your needs. While the difference in rates may seem small at first, they can make a lot of difference over time and will help you reach your target deposit amount sooner.
Set up a monthly savings plan
Rather than seeing how much money you have left at the end of the month and putting it towards your deposit, set up a standing order for a set amount of money at the beginning of each month.
You will quickly get used to economising, and you won't be tempted to spend the money left in your pocket at the end of the month on frivolous things.
Rent with friends
We all know that rents are sky-high these days, making it even more challenging to save for a deposit, especially if you live on your own. It can certainly be cheaper to share the rent, council tax, and utility bills with someone else while you save for your deposit.
If you have a friend renting alone and is in the same situation as you, it can pay you both to pool your resources and share a flat or go into a house-share with more of your friends. This will be so much cheaper than each of you renting a single bedroom property.
Review your outgoings
Take some time to look at your spending closely. Take a look through your bank statement and see if there are any outgoings that you can do without. This could be a subscription service that you no longer use but forgot to cancel.
Look over your statements for the year. You may have subscriptions or automated payments coming out quarterly or every six or twelve months for things you can manage without.
Looking over your statement can be really eye-opening. You may notice that you spend a lot of money a year buying coffee and sandwiches on the way to work. If you are unwilling to give these up completely, then at least think about making your own lunch a few times per week.
Get a thermal coffee cup and make your own coffee to take to work with you. This can save you a small fortune!
First-time buyer help
It would help if you took advantage of any help offered to first-time buyers. This can be a Government Help to Buy scheme for first-time buyers interested in buying a new-build property. Or it could be a particular mortgage offer exclusively designed for first-time buyers that often come up.
It can help to use a mortgage broker to help find you a good mortgage deal. They can often come up with better mortgage offers than you can get from high street banks and building societies.
We hope these tips help! Good luck with your plans for your first home.
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