8 Top tips for saving for a deposit

- Wed 24 Apr 2024

If you’re a first-time buyer or even if you’re taking the next step up the property ladder and just need to boost your current equity and savings - you might be wondering how you’re going to be able to save enough money for the required deposit, especially during a cost-of-living crisis. That's why we've compiled eight top tips to help you through the process by cutting back on your current spending and enable your move into a new home.

There is currently big news for first time purchasers as there is now a 99% Loan to Value mortgage product available on the market. So, with a minimum deposit of just £5,000, you can step onto the property ladder with a peace of mind of a 5-year fixed rate mortgage product. Eligibility: Available across England, Scotland, and Wales for properties up to £500,000 (excluding flats and new builds)

Get in touch with Bradleys Financial Management today on 01395 222391 to discuss your options with their team of experts. You can find out more through the following link:

https://www.bradleys-estate-agents.co.uk/pages/mortgages

Open a lifetime ISA:

Break down the deposit goal into manageable amounts and consider opening a Lifetime ISA. With this scheme, for every £4 you save, you'll receive a £1 government bonus, making your savings journey more achievable.

For example, if you’re aiming to buy a property for £150,000 and need a 10% deposit, getting together £15,000 could sound like a huge challenge. But, if you are eligible for a Lifetime ISA, you can secure £1 for every £4 you save, up to £4,000 each tax year.

Keep a record of your expenses:

Track your spending meticulously. By creating a budget spreadsheet and monitoring your daily expenses, you'll gain better control over your finances and identify areas where you can cut back.

Cut back on take-aways and make food at home instead:

Small purchases like daily take-out coffees and ready-made sandwiches can add up significantly over time. Consider preparing meals at home to save hundreds of pounds annually.

Opt for home entertainment:

Instead of eating our or going to cocktails bars, host gatherings at home. Make it fun by having cocktail nights in and themed nights with your friends and family. Or ‘supersize’ this saving tip by volunteering to be the designated driver for your friends as long as they contribute towards the fuel and keep you topped up with soft drinks.

Consider downgrading your phone plan:

Explore more affordable phone options and data plans. By opting for slightly older models and less extravagant plans, you could save a substantial amount each month.

Request money over gifts:

Inform your friends and family about your savings goals and request cash gifts instead of traditional presents. Every contribution, no matter how small, brings you closer to your deposit target.

Take on extra work:

You may already have a full-time job, but could you do some extra freelancing or take a shift in a local café or bar at the weekends, babysitting/dog sitting or if you love the gym, could you work for them part time, earn some extra money and cut back on the cost of your membership? If you can find a way of turning a hobby into a money earner, this can be a great way to help save for a deposit.

Share transportation costs:

Consider lift sharing with a roommate, partner, or family member to cut down on transportation expenses. Alternatively, selling your car and using car-sharing services can free up funds for your deposit.

Additionally, explore government schemes like the First Homes scheme and shared ownership options, which could significantly reduce the required deposit amount.

Saving for a deposit may require temporary sacrifices, but the reward of owning your own home is priceless. Remember, with determination and strategic planning, your homeownership dreams can become a reality, even in the face of economic challenges.

If you are looking to find your next home, you can register on Bradleys Estate Agents mailing list via the quick and easy online form.

https://www.bradleys-estate-agents.co.uk/pages/customer-registration

8 Top tips for saving for a deposit

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