When you want to buy your own property, you can often feel deflated that things don’t happen quickly enough. Saving up for a house is a marathon, not a sprint. But there are ways to add to your savings pot and speed your brisk walk to a light jog. Let’s have a look at some ideas about how to save money for a house deposit.
Know What You Need
Firstly, before even starting to think about how to save for a mortgage, you need to know how much you are going to need. The average first-time buyer puts down 20% of the value of the property as a deposit. That could be £20k, or could even be £40k! Whilst you might be able to get a mortgage with a 10% deposit, the more you can put in, the better rates you will get. Know where you are looking to buy and the approximate cost of the type of house you are looking for. That way you can figure out how much deposit you would need and even how much you could maybe enhance that figure by.
The Lifetime ISA
You may have heard of the Help To Buy ISA. Well, that closed in November 2019 to new applicants. If you opened one in time, continue to pay into that as the government will top up your savings by 25%. This is similar to the Lifetime ISA, or LISA. You can use this to buy your first home or maybe to save for a later time. You must be 18 to open a LISA but under the age of 40. Those with a Lifetime ISA can put £4k into it every year (until you’re 50) and the government will top it up with 25%. This means that for saving £4k for 5 years, means you’ll get £5k. This could be the ultimate answer to how to save money for a house deposit.
Switch Utility Companies & Save
One of the easiest ways to save money generally is to swap utility companies every year. Never auto-renew. There is no point in loyalty to a gas, electric, mobile phone or broadband company as they have no loyalty to you. The best offers are always for new customers so ditch and switch when your new customer offer expires – GreatDealsMadEasy has some great cheap deals from leading Broadband providers. Using the money you save and even the payout you get if you click through a cashback site (like My Money Pocket, Topcashback or Quidco) can help you answer the question of how to save up for a house.
Making the actual process out of saving, you can set up automatic payments so that you put aside money without you noticing. Apps like Chip are fantastic for this because once you’ve set up the auto part of it, it just does it without any input from you. This is a great addition to the list and maybe the best way to save money for a house.
You might be asking the question of how to save money for a house deposit whilst heading out the door to a party. Or maybe tucking into a takeaway pizza. Maybe you’re even opening the box to a new outfit. you bought online. Some people go out once a week and spend at least £60. That’s £240 a month on partying! Some get a weekly takeaway of £25. That’s £100 a month! Do you need that new outfit when you’ve got a closet full of clothes? That could be another £50 a month. Those three things add up to almost £400 a month! Perhaps the best way to save money for a house is to be aware of what you’re spending your money on and push it into your saving account instead.
Sell Your Unwanted Stuff
Research suggests that the average household has between £500 and £1000s worth of stuff that they don’t use, want or need. Collate it together, sell it online or take it to a car boot sale. Put everything you earn from these sales towards your future. That could be a great boost to how to save money for a house deposit fund.
Change Your Holidays
We might be looking at the best way to save money for a house but that doesn’t mean we have to avoid the things we enjoy. We still have a life to live and if we completely focus on the future, we’ll miss out on this chapter of our life too. If you love holidays, maybe consider switching up the way you holiday. Rather than an expensive and extravagant £3000 per person trip abroad, why not head to a campsite in the Lake District? Or have a staycation and explore an English Heritage attraction with the family or alone. You can still explore an amazing place. However, you’ll save an absolute fortune that you can put towards your home purchase.
So Many Ways To Save
How to save money for a house deposit? As you can see, there are so many different ways to save! For every pound you save, the closer you will get to that home you want. The one you can fill with love and make amazing memories in. Let us know your best way to save money for a house over on Twitter. Need more help saving for a mortgage? Check out 20 saving tips from UK leading bloggers and cheap things to do whilst working from home.