So, you’ve decided you want to buy a house! What an exciting decision to make! Buying a new property is not always straightforward and most people find that the biggest obstacle to buying their home is the deposit that they need to save.
A home deposit is a huge amount of money and while there are plenty of schemes that allow 5% deposits, the last thing that you want to do is struggle to live while you try to save the amount you need – no matter the percentage! You can work out your finances with websites like MortgageCalculator.Org, but you need to think about whether you can afford a deposit while trying to live your current day to day expenses. So, with this in mind, we’ve got seven ways you can save successfully for a mortgage deposit.
Stop Pouring Money Into Rent
If you are currently renting out a home, you are pouring your cash into an empty bucket! Instead of paying off someone else’s mortgage, pay off your own and you can save your deposit by moving back home and saving your rent.
If you are currently renting and you can’t move back home, think about downsizing your home and renting a smaller place. Even if you rent a room rather than an entire place, you can reduce your rent and add more money to your deposit account.
Ask the Bank of Parents
Do your parents have any ways of giving you some help? You should consider asking them whether they can give you a hand with your deposit. Some parents offer to pay a chunk of money into a deposit fund and if you don’t ask, you don’t get!
Are there any local schemes in your area that will offer help to buy a home? Checking these out will help you to build up your deposit and mean that you don’t have to save as much money as you would have traditionally.
Ask a Guarantor
Did you know that you can get a guarantor to help with your mortgage deposit? If you can’t borrow and get some help, use a mortgage that will allow you to have a guarantor. This saves you needing to gather thousands to act as a deposit and you can still get a mortgage!
Part-Buy a Property
You can part-buy a property and try out shared ownership. It’s a good start as a property owner without needing a giant deposit and while you won’t own 100% of the house immediately, you will still be a property owner! You can still have a deposit, but it doesn’t have to be that big.
Budget Carefully. It’s so important that you use the link provided earlier to find out whether you can put together that deposit on your current earnings, or whether you need to add to your income. It’s important that you make your money work for you and you can do that with a deposit that means you can buy a house.