While it may feel impossible to save up enough for a deposit, there are lots of things you can do to help you buy a house sooner than you think.
Saving regularly not only means you’ll have the deposit ready when you come to buy your house, but it also shows lenders that you’re likely to repay your mortgage on time - win-win!
Budgeting wisely, making cutbacks, using government schemes, and getting advice from mortgage advisers are the best ways you can improve your chances of buying a house.
1. Budget wisely
Looking at your incomings against your outgoings can highlight where cutbacks can be made. For instance, are you paying for a gym membership that you don’t use anymore?
When budgeting for buying a house, you should consider any unexpected costs and be sensible when making estimations - it’s better to over-estimate than under-estimate.
You might want to consider setting up a direct debit so that you automatically send money to your savings account each month. This way, you don’t have to remember to do it yourself. Plus, the money isn’t sitting in your current account where you might be tempted to spend it!
For help managing your finances, take a look at our budget planner.
2. Make cutbacks
Making cutbacks doesn’t have to mean giving up everything you love. The easiest way to save is to make sure you’re not overpaying on your gas, electric and various insurances.
Changing your provider and finding the better deals can help you save up to £200* a year towards your deposit, and speed up the process of getting on the property ladder.
Whilst you might not think you spend a lot on eating out, shopping etc. by cutting back here you’ll soon start to see the savings pile up. Why not start this month and limit yourself to two meals out?
3. Take advantage of government schemes
The Lifetime ISA is essentially a savings account with a few added benefits. You can pay up to £4,000 each year into your account and receive a 25% bonus (£1,000 maximum) from the government.
4. Use the bank of Mum and Dad
Borrowing money from your Mum and Dad can be a quick way to help you get on the property ladder.
If your parents are willing to help you financially, just be aware that there’s a set procedure to follow, as this money has to be officially gifted.
Please get in touch if you need any advice on how to gift money.
5. Talk to a mortgage adviser
Whether you’ve just started saving or you’re ready to buy your first home, getting mortgage advice from a professional can be invaluable.
Our advisers can search over 12,000 mortgage products from more than 90 lenders to find the right one for your needs.
A mortgage adviser will look at your income and outgoings to work out how much you can afford to borrow and how much you need to save. Following this, they’ll explain all the options available to help you buy your first home.
If you have any questions or concerns, please feel free to contact us today. We can be there to support you and handle your whole application from beginning to end.
*according to Department of Energy and Climate Change Government Statistics
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.