Buying your first house is an exciting time. You can picture your dream home and you feel ready to take the step onto the property ladder. But before you can start picking paint colours and choosing a new sofa, you need a mortgage deposit first.
Saving for a house is a good way to show that you can commit to mortgage repayments, and it helps you get into useful saving habits too. Saving money takes time but there are ways to make it easier. Here are some tips to help you save to buy a house.
Research
Doing some research will give you an initial understanding about what is involved in purchasing a property and if there any additional costs besides a deposit, such as legal and surveyor’s fees. Other things you may want to consider is the location. Is it affordable, and what do you require from a property long term?
There are lots of online resources available to help you get started, from mortgage calculators to our regularly updated market news blog.
Open a savings account
Opening a separate bank account dedicated for your house savings is an easy way to start putting money aside to build up a deposit. You can simply open another account to transfer money in to, or open an ISA that suits your requirements such as the Help to Buy ISA for first time buyers.
Plan and budget
Taking a look at your monthly income and outgoings will help give a clear picture of how much you have available to spend or save every month. You can start by writing down your commitments, such as bills, add up the total and take it away from your monthly income. You will be able to see what you have left and then you can start planning a monthly budget depending on how much you want to save each month.
Do things for free
It may feel like you have to stop having fun when you are trying to save money but there are plenty of little things you can do for free that will help reduce your spending. You can go to your local library and take out a book instead of buying one, try an online exercise video instead of paying a gym membership, cook at home on a Friday night instead of getting a takeaway or go outside for a bike ride.
Be creative
Think of ideas where you can cut back on your spending like bringing your lunch into work instead of buying a sandwich, or doing your food shop in Aldi and other discount stores. Sell clothes you no longer wear or maybe try making homemade gifts for special occasions. It may not feel like it will make a big difference but all the pennies soon add up.
Get expert advice
A mortgage adviser explains all the options available for you including current government schemes, what is affordable for you and everything involved with buying a house. They can guide you through the mortgage application process, answer any questions you may have and will help you understand everything you need to know from professional experts.
It takes time to save a deposit for a house and to go through the house buying process. Our expert mortgage advisers can help make it as easy as possible and we make sure you never pay more than you need to.
You can get in touch with us if you need help buying your first home and would like to speak to a mortgage adviser.