So, you’ve decided to take the next step and get yourself on the property ladder, but what happens next? Saving for your deposit isn’t the easiest job, although it doesn’t have to be difficult! We’ve put together a list of tips to help get on the road to your new home…
Set a goal
It’s important to know how much you need to put away for your deposit – and having a goal can help to motivate you to keep saving while giving you something to work towards. It’s no good hoping to save £5,000 when the property you’re interested in needs double that.
Start by researching the type of property you’d like to purchase, whether it’s a flat, semi or terraced, and decide on how many bedrooms or bathrooms you’d prefer. Once you have your ideal home in mind begin looking at prices and assess if they work with your budget. If you can afford it, you can then figure out how much you need to save for a deposit. It’s worth noting that the higher your deposit amount, the better rate you’ll receive.
Mortgages are available with a deposit of as little as 5%, but 10% is the recommended amount.
Slice your living costs
We are all guilty of paying £10 here and £20 there for various TV subscriptions, takeaways and other luxuries, but even the odd couple of pounds quickly adds up. Do you need to be subscribed to all streaming services? Write down a list of your monthly outgoings – including the minor payments and think of what you could live without.
Everyone loves a weekend takeaway (or two), but each order costs on average at least £15 – which could be used on better things! It’s much more cost-effective to do a weekly shop and prepare a meal plan. Any money you’d opt to spend on a takeaway put it away into a savings account and see the figure quickly increase!
We also recommend opting for a separate bills account - each month set aside the finances you need to pay any bills and live from, then anything that’s left simply pop into your savings.
Reach out to family
We aren’t suggesting go around your family members with your piggybank and asking for coppers, but when it comes to Christmas and birthdays, it’s the perfect time to request a helping hand. Instead of listing certain gifts, ask for a sum of money that can be put straight into your account. That way, it takes a little pressure off you, and it’ll save your family figuring out what to buy for you.
Another alternative is to consider if moving in with parents may help you save the funds you need a little faster than if you were to continue renting.
Build up your credit score
It’s true when they say, “you need to have credit to get credit”. It’s often useful to get a credit card and put small payments on each week – whether it’s a quick meal deal or your petrol - and pay it off straight away. It’s a great way to build your credit score.
Another useful way to boost your score is by enrolling on the electoral register!
Contact our mortgage adviser
Our expert mortgage adviser can research over 90 lenders and help you to get the best deals available. This can save you a lot of time contacting and visiting banks and our adviser will assist you throughout the full process, from applying for a mortgage to the completion of the purchase and getting the keys to your new home.
It’s also useful to check out different savings accounts and interest rates that are available and will benefit you the most. You don’t have to take out an account with the bank you’re already registered with – you can mix and match!
Do you have any useful tips for first-time buyers? Let us know by tweeting us, @ventureprop.