PURCHASING your first home will be one of the greatest feelings of your life, finally getting your hands on the keys to your own space fills thousands of Brits with immense pride every year.
However, saving for your first deposit to get that all important first step on the property ladder can feel unachievable and fill you with dread.
Saving can seem almost impossible, especially with the average deposit amount of 15 per cent of the property cost.
Thankfully, financial experts at Online Mortgage Advisor are on hand with their top tips to speed up the process of saving for your first home.
They have revealed seven top tips to ensure you’re on the right track to saving the amount you need as quickly as possible.
Reduce your rent as much as possible
Saving for a deposit while also paying rent can seem like a huge task, but you could reduce the cost of your rent by opting for a house/flat share. This will free up more of your monthly income and you will be able to put this aside for your house deposit.
Put away your savings as soon as you get paid
This is a tip that everyone is always keen to offer up, but it really does work. Putting the money for your deposit into a savings account as soon as you get paid will make it much less likely for you to overspend each month, and will make sure you stay on track with how much you want to save after each pay day.
Don’t start saving with unrealistic expectations
In reality, you’re not going to have thousands and thousands of pounds in a savings account ready for your deposit within a year. It takes time to save up for a deposit, so don’t despair if you don’t have the amount as quickly as you originally hoped, or if you have to miss your monthly savings target. You’ll get there in time!
Open a lifetime ISA
The 25 per cent bonus that comes with a LISA, it can be a massive help when it comes to buying your first home. As long as you’ve had your LISA for longer than a year, you’re able to cash it out as a first time buyer, provided you’re purchasing the property with a mortgage and it costs less than £450,000.
Move back home
While this might not be an option for some people, a huge way to cut costs and free up more money for you to set aside for a deposit is to move back home with your family or even friends. Just make sure you have a conversation about rent, chores and space before you move back in to make sure everyone is happy with the situation.
Buy part of a property
While this technically isn’t a way to save quicker, it allows you to cut down the amount you’re needing to save. Shared ownership and shared equity schemes involve purchasing part of a property and renting the rest. While you wouldn’t own 100% of the property straight away, you’d have a foot on the property ladder. You’d still need a deposit, but you’d only need to borrow 25 per cent, 50 per cent or 75 per cent of the property value, rather than needing to borrow 90 per cent plus.
Cut out unnecessary costs
While we all love a takeaway coffee and a meal deal, it can quickly add up. Take the money you’d spend on those each day and put it into your savings account. It will definitely shock you as to how quickly your savings account will grow.