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Buying a house is a major milestone. And a costly one at that. If you’re wondering how to buy a house and save for your deposit, then you’ve come to the right place.
But first things first, you need to first figure out your budget. The best place to start with this is to speak to an independent mortgage advisor, who will be able to assess your earnings and determine how much you’ll be able to borrow. From there, you’ll be able to figure out how much you’ll need for a house deposit and you can design your savings plan from there.
Ready to explore the best ways to save for your house deposit? Read on to discover our top tips and tricks on how to buy a house and save for your deposit.
Assess your daily spending
We waste a lot of money on simple, everyday stuff. Take that £3 sandwich you buy every day on your lunch break, for example. Over a month, that’s £60! Before you start saving, spend some time analysing your spending habits. Write down what comes in and how much you spend each month. Are there any areas you can cut back on? We bet there is.
By making simple switches like swapping your £3 sandwich for a homemade sandwich, you can save a whopping £40 a month. That’s £480 a year! If there’s a coffee machine at work, use this instead of buying that Pret on your commute. All these little changes can really make a difference.
Change your current living arrangements
Since rent on accommodation is likely to be one of your biggest monthly expenses, consider the option of moving somewhere cheaper to free up some extra money to save on your deposit. This could be for six weeks, six months or even six years depending on your savings plan.
Many UK nationals take this opportunity to move back into their parents’ house for a while. But if you’re a migrant in the UK, this might not be an option. Instead, you could move to a cheaper area, move into a flatshare or consider getting a lodger if you have the space and your landlord allows it. Remember: every little helps.
Earn extra money
Another way to boost your monthly income for savings is by earning extra money. If you have the time, consider an additional job like weekend bar work, gardening or babysitting.
You can also earn easy and quick money by selling things you don’t need on eBay or Facebook Marketplace. Not only will this earn you extra money, but it’ll also help you declutter ready for when you do eventually buy your own place!
Reassess your bills
When you’re trying to save money, it’s a good idea to assess your monthly bill commitments. If you’re paying interest on credit cards, consider paying these off first. Not only will this decrease your monthly outgoings but it’ll also help to boost how much you can borrow.
Energy bills are a huge expense at the minute. If your landlord allows, see if you can switch your energy provider. Many providers offer time-of-use tariffs, where you can save money by setting appliances like dishwashers and washing machines to go on overnight instead. Finally, reassess that gym membership. Are you using it less than once a month? Cancel and save!
Buy a house with your friends
If you dream of buying a house but know things will be pretty tight, then consider the option of buying somewhere with a friend (or your partner if you’re in a relationship). Not only will this halve the costs of buying a house, but it’ll also help your affordability and increase how much you can borrow.
Before you make the decision, think carefully about whether it’s the right thing to do. This is going to be one of the biggest investments of your life so it’s important that your friend is reliable and financially secure. When you do decide to go ahead, speak to your mortgage advisor about your options. For example, you could go for a joint mortgage or choose to own the property as tenants-in-common.
We hope these savings tips help you on your quest to buy a house. Good luck!
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