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9 Things You Need to Know About Saving for a House Deposit

Saving for a house deposit

Since the housing crisis of 2018, banks have imposed a range of tighter restrictions on mortgage applications. The days of the zero per cent mortgage are long gone.

You’ll need a minimum of a five per cent deposit. And because house prices are at record levels, you’ll need several thousand pounds to be considered for a home loan.

Getting that kind of money together isn’t easy. It requires hard work, organisation and a lot of sacrifices.

To help you on the house buying path, we’ve put together 10 top savings tips for saving for a house deposit.

1. Cut back on your spending

To save tens of thousands of pounds, you’re going to need to stop the more frivolous aspects of your spending. Stop buying those morning coffees, and cut back on your trips to the local restaurant. Go through your bank statements, and look for opportunities to save money. The more frugal you are, the faster you’ll get your deposit together.

2. Open a savings account

Don’t leave the money you’ve saved sitting in your current account. You’ll always be tempted to spend it on frivolous things. Open a savings account, and transfer your spare cash into it as regularly as you can. And make sure you get a good rate of interest and tax-free savings with an ISA.

3. Set yourself goals

Saving for a house deposit

Set yourself monthly savings goals. Start a diary and set a realistic goal every month. But take into account any significant spending commitments you can’t avoid. By splitting your savings target into manageable chunks, you won’t lose heart when progress is slow.

4. Sell unwanted items

Go through all your possessions and set aside anything that you don’t need or want. Hit the local car boot sale to sell your cheaper, everyday items. If you have expensive items worth selling, list them on eBay or at local auctions. If you have a car to sell, list it on a car selling site, on Facebook or in the local newspaper.

5. Downsize your home

Renting a home in the UK is more expensive than ever. If you’re prepared to live in a smaller home or a less popular area, you might be able to save a lot of money every month. Downsize your rented house, and transfer the money you save every month into your savings account.

6. Create a spending budget

Don’t leave anything to chance. Create a monthly spending budget that includes all your essential outgoings. And be realistic. For example, never spending money on leisure activities and treats isn’t sustainable. Make space in your budget for these things.

7. Set up a standing order

Saving for a house deposit

Don’t let your bad memory get in the way of saving for a house deposit. Set up a standing order with your bank, so the money is transferred automatically every few weeks. Set the payment date to your payday, so the money leaves your current account before you can spend it.

8. Find an additional income

The quickest way to save a house deposit often involves increasing your income. Whether you ask for overtime at work, take in a lodger or find a second job, every little helps. Just make sure the extra money you make all goes into your savings.

9. Ask your parents

Buying a home in the UK is harder than ever for first-timers. House prices are higher than ever. And the average income precludes a lot of people from getting on the property ladder in their area. But asking the bank of mum and dad for help could be the answer. Whether this involves dipping into savings or an early inheritance, a gift or loan from a loved one can get you on the housing ladder fast.

If you’re disciplined and determined, there’s no reason why you can’t save for a house deposit in just a year or two.

For more information on how can help you sell your house fast please visits our contact us page.

Sell Property Fast Cash,
Summer Lane,
South Yorkshire,
S70 2NZ
Telephone:0800 68 99 42

We Buy Any Home

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