Buying a house is likely to be one of the biggest financial commitments you make in your life, so it’s important you ensure you are managing your finances correctly.
The first thing you need to do is work out how much you need for your deposit. How much you can afford to save each month.
The deposit you’ll need will vary on the mortgage you can take out but remember the more you save for your deposit will result in lower repayments each month!
The major banks all have handy online mortgage calculator tools where you can enter your details and calculate the mortgage you would be likely to be offered. Most of these come with a sliding scale so you can see how the deposit might affect the mortgage, and this will give you a number to aim for.
Once you’ve worked out how much you need to save, you need to look at your monthly expenses to work out where you can save. Saving isn’t always easy, but there are things you can do to speed the process up:
Save yourself that daily outgoing by making yourself a sandwich at home. If you spend £3.50 on your lunch every day, by switching you could be saving over £800 a year!
We are all guilty of that drive-thru coffee on our way to work at 7am. If you think about it long term, that £3 cup of coffee could add up to over £700 a year.
Moving back in with your parents sounds like a definite no-no, but it does have perks, like being able to save two thirds of your salary towards your new home instead of paying for rent, council tax and bills.
Taking on weekend work, an extra weekly bar shift, delivering pizzas or selling crafts might seem like the last thing you want to do with a full-time job.
Share your innovative ways that you have saved up for a deposit.
