According to UK Finance, the average mortgage for first-time buyers is approximately £145,000 and the average deposit £22,000, a fairly large sum and one that can be off-putting. It isn’t an impossible figure to reach, however, especially if you use the following five ways to start saving fast.
1. Save Regularly
Once you know the deposit you’ll need and you want to move, use these to calculate how much you need to save each month. Set up a savings account, and move this amount into it as soon as you get paid. This way, you won’t miss the money or be tempted to spend it. Plus, seeing your savings build up will help keep you motivated, encouraging you to save more.
2. Spend Your Money Wisely
Whatever you’re saving for, it’s impossible not to spend anything. The trick is looking for deals, meaning you spend less and can save more. This could mean buying own-brand products versus named-brands when you’re at the supermarket, finding the best prices through comparison sites or using vouchers to get good prices on everything from household items to holidays.
3. Get Professional Advice
While most people speak to banks or building societies when looking for a mortgage, you might get a better deal by speaking to a mortgage broker or a conveyancing solicitor such as https://www.samconveyancing.co.uk/. Brokers can negotiate better rates on your behalf, and solicitors can make sure you’re protected legally before you buy your house.
4. Reduce Your Rent
When you’re saving for a deposit, every penny you spend on rent is a penny wasted. If you can, reduce your rent payments and put the difference straight into your savings account. Consider moving in with your parents if you can, finding a flatmate if you live on your own and have a spare room, or renting a room in a shared house rather than your own home.
5. Look at Ways to Bring in More Money
If your savings aren’t building up quickly enough, look at other ways to bring in money. This might be finding a second job, selling unwanted belongings on sites like eBay, or completing online surveys: some people say this can bring in several hundred pounds a month, which would definitely help you reach your savings goals quickly.