With private rent prices always increasing, more and more of us are wanting to buy our own house. Pay our own mortgage rather than your landlords. It’s not always an easy thing to do though and saving for a house deposit is not easy especially when you’re already paying rent.
The more you can save up for a deposit, the less money you will have to borrow on your mortgage and the more likely a bank will lend you the money.
Here are a few ideas to get you one step closer to getting your foot on the property ladder
Work out your target
Work out how much money you need to save for your deposit. Obviously the more you can save the better but generally you will need 5% – 20% of the house value. Once you have worked this out, it gives you a figure to aim towards.
Obviously the sooner you start saving the better. If you’re still young, just in your first job and living at home, now is the time to start putting away any spare money you have each month. Even if you aren’t living at home, have bills to pay and kids to feed, now is the time to start saving. Work out what money you have left over each month and put it in savings now.
Redo your budget
I’ve talked about budgeting before and how important it is to have one. Now is the time to scrutinise your budget. Make sure you know where every penny is going. Make cut backs wherever you can and allocate any spare cash to your house deposit fund. You will soon notice your savings build up.
Open a savings account
As soon as you decide to start saving for a house deposit, you need to open up a good savings account to get the most interest on your money. You want to look for accounts with the highest interest rate. You could opt for a help to buy ISA which is probably the best option for first time buyers. A help to buy ISA is when the state pays an extra 25% on top of the amount you have saved when you’re ready to buy a house. You need to save a minimum of £1600 and you would get an extra £400 on top of this. The maximum you can save is £12000 and for this you would get £3000 extra. That is a lot of free money which will be a great help towards your deposit.
Earn more money
Now you know how much you need to save and have worked out your new budget, its time to start making more money to help you reach your goal a lot quicker. There are many ways you can make money from home. I am a huge fan of side hustling, and have lots of ideas of ways to make money around work and kids. Just figure out what works best for you with the time you have. Anything you make from your chosen side hustles can be put straight towards the deposit.
Good luck with the savings and let me know how you get on!
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