Your First Home: Saving For a Deposit
Buying your first home is one of those big chapters in your life that can often feel like a big of a hurdle to overcome. It’s not an easy process, and the first part is having to find the funds in order to afford it. So here are some tips to help save for your first home.
Start With A Strict Budget
A budget is essential. Creating a budget means you’ll know exactly what is going in and what is coming out. Then you can look at your remaining income to see how much you can set aside for saving.
Cut your bills. When was the last time you checked to see how much you were paying for gas, electricity, broadband and groceries? If you haven’t switched energy provider for 2 years or more you really should consider switching to a provider like Bulb, they’ll even pay you £50 for switching and cover any cancellation fees! To cut the cost of groceries, I claim £100’s worth of free food with various apps, coupons and offers!
Look into a savings account. When I decided to save for a house I opened a Help-to-Buy ISA. When you save money into a Help to Buy ISA the Government will boost your savings by 25%! So, for every £200 you save, the government will reward you a bonus of £50.
Ask Family For Support
Family is there to support you in times of need, and you need that deposit before you see how much you could borrow on a mortgage. Asking your family for a financial loan might be worth doing because some parents do keep savings for their children and for them to use when the time comes. Don’t just ask them point blank as you might want to treat them to dinner first before you ask the question. They might not have saved but are willing to help you where they can in order to provide for their children and give them a helping hand on the property ladder. Again, it might not be much, but it will all be worth it in the end when you finally have enough to pay for a deposit on a property.
Stop Renting And Return Home
Renting can cost so much money, and when you’re living in a big city, that will be eating into your finances. It’s worth looking into the possibility of not moving back home. Sometimes that might not be possible, but if your parents live reasonably close and the commute isn’t that bad, then it’s worth factoring in.
If you have friends that have a spare room to let, it is worth looking at living with them. Moving into a shared house is usually cheaper than renting alone, giving you the chance to save up for a place of your own.
Buy Part Of The Property
Even though you might not be able to afford a deposit for a whole property or for a mortgage on the dream house you were hoping for, there are other options available. Shared ownership is something that’s offered and might be a way to get yourself partly onto the property ladder. Once you’ve managed to get somewhere with the mortgage payments, you can always sell up and then get a full property with the profits you make. Nothing is fully out of reach, so it’s important to explore all your options first.
BOOST YOUR INCOME
The most productive way to move towards buying your own place is to increase your income! Not only will this help with your deposit but it will also show mortgage providers that you can afford to buy a property, Is it time to request a pay raise? Could you ask for extra hours? Is there a side hustle you could manage alongside your job?
There are tons of ways to earn more money including part-time work, survey sites, task apps, mystery shopping, reselling, and even blogging! Find out which side hustles are right for you by visiting my side hustle page.
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Saving money for a mortgage may take a little time, but with help from family members and choosing the right bank provider, you may save it up a little quicker. Cut your luxuries and be strict with your budget to save every spare penny.