The best way to save for your first home

You’re probably used to saving up for things you want to buy, such as a new car, holidays etc. But saving for your first home can feel very different...

When you think about saving for your first home, you might feel overwhelmed at first. But don’t worry, there are lots of things you can do to help build your deposit up. 

How much money do I need to buy a house?

The first step is finding out roughly how much you need to save, so that you have a goal to work towards. 

Here’s a list of the average first time buyer prices, depending on your region, and how much a 5% deposit would be. 

*

So now you know roughly how much you need to save as a starting point, it’s time to create a plan that’s realistic enough for you to stick to. 

Our budgeting tool can help you do this. You can see all your incomings and outgoings in one place to help give you a better handle on your overall finances. 

Although budgeting sounds like a miserable thing to do, it can actually throw up some nice surprises. For example, you might be paying for a magazine subscription you don’t need anymore. Or maybe you’ve signed up to a credit card with an annual charge, when there’s actually a better deal available now. 

As well as creating a budget, there are some smaller changes you can make which can help boost your savings as well. 

Rethink present buying

If you have a good group of friends, you could all agree to not buy birthday or Christmas presents. Instead, why not go out for a meal and agree that everyone chips in to pay for the birthday person’s meal?

But if you really want to buy presents, put a limit on what you spend, or you could turn it into a challenge and see who can get the most inventive present for under a fiver or a tenner.

You could also stop buying things like clothes and shoes for yourself. Instead, put them on a list and ask people to buy them as presents. They’ll probably be grateful for the help, plus you’ll save more money and reduce the number of unwanted presents in the process - win, win! 

Save money and get fit!

Did you know you can spend hundreds of pounds a month alone just running a car? Rather than jumping in the car without a second thought, question whether you could walk to the shops or to your friends house instead. Walking a bit extra each day can help you lose physical pounds, and save money towards your deposit at the same time.

Don’t be afraid to ask questions

Getting financially ready is the biggest step you can take towards getting ready to buy your first house, but it’s also important that you're not afraid to ask for help. 

Mortgage advice can put your mind at ease, help you figure out what your next steps are, and point you in the right direction when saving for your first home.

We’re more than happy to answer any questions you might have. No matter how silly you think they may be, we guarantee you won’t be the first - or the last - person to ask it! 

Get in touch today to find out how we can help.

*Money.co.uk, 2022