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The average down payment is £8,900, but many purchasers are still struggling to save the norm of 5%. Also, many eager purchasers prefer big deposits to avoid unmanageable monthly mortgage payments.
One needs an average of £18,000 in London, £11,000 in the South East, £5,000. Those who do not qualify for Help to Buy (or do not desire to participate) must often save double or triple these sums.
It’s no surprise that many people struggle to save enough money each month when these deposit amounts are half of some people’s annual salaries. To get out of a financial rut and onto the property ladder, try using any of the following ideas.
Don’t rely on your good intentions to save money every month. Unlikely. Set up a monthly standing order to automatically transfer funds into a savings account or ISA.
Stop Wasting Money
How often do you go out to eat? Do you need Prime? How much are eBay ‘bargains’? Take control of your finances and reduce your monthly expenditure by reviewing your bank statements. Question every transaction and direct debit.
Look for a new ISA or savings account that offers better rates of interest or other benefits. Transferring money between providers may seem complicated, but it can be done in only a few clicks.
Jot Down Goals
If you want to save £5,000 before Christmas, divide it down into small bits. We are more inclined to stick to anything if we can see progress, although working towards a goal can be exhausting, especially if you feel stuck. Aim for the first £500 and the task of saving money will become addictive as you try to beat your time limits.
Clear And Sell
Pick a room to declutter first. You’ll be moving once you’ve saved your deposit, so now is the time to organise. Also, your ‘tat’ is someone else’s treasure. You can sell your unwanted items if they are in decent shape. Every month, focus on a different part of your current home and save any profits.
Use Coupons And Bulk Buys
Don’t sneer at Costco, Aldi, Poundland, and Savers. Discount retailers can dramatically reduce monthly grocery and hygiene product costs, especially when buying in quantity. Buy ‘own brand’ products; they are often the same as premium brands in a less appealing packaging.
Buying A Cheaper Home
If you know rent and saving are difficult, consider moving to a less expensive apartment. Agents rarely impose fees if you move into another property they manage, saving you money on council tax and expenses.
Consider Low Entry
A three-bedroom detached family house with off-street parking and a landscaped garden is a dream for many first-time buyers. Most buyers would benefit from lowering their expectations and entering the market at a lower price point. Mortgage advisors will be able to help you decide if this is the best option by letting you know how much mortgage is available to you.
Keep A Budget
Although it may seem restricting, monthly budgeting can help you save money. Budgeting to the nth degree isn’t required, but estimating monthly savings will help you visualise how much you could save.
these tips should help you when it comes to saving for your first home. Do you have any other tips you are following? Please share some of them in the comments.
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