Six Ways to Save for a House

Saving for a house deposit can be daunting, especially with the current cost of living and house prices rocketing for many. However, there are some simple steps you can take to alleviate the stress of savings. 

We know saving isn’t as simple as some make it seem, so we’ve listed some realistic steps you can take to help save money where you can. 

Help to cut the cost of your rent

If you are currently renting, you could consider sharing an apartment with friends or seeking out a flatmate on flatshare sites. Many tenancies work on the basis of joint liabilities, meaning all tenants are jointly responsible for paying rent and any other home bills such as electricity and water

If you are in a position in which your flatmate moves out, you should consider searching for a new flatmate as quickly as possible to help cover the costs of the flat. 

You may also want to consider co-living developments, which are where you rent your bedroom but share communal spaces such as kitchens and living areas. The positive about co-living is that you can rent as an individual tenant and all your bills are included in the rent. 

Prices for flats and co-living developments can vary widely, so it’s best to do a bit of research before settling on the first one you see. 

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Reduce your everyday spending 

Making small changes to your daily spending habits is a great way to save weekly. Changes such as making your lunch or coffee at home and bringing it to work may only save a small amount each week, but over the months this saved money will slowly add up. 

A good method to evaluate your spending is by writing down what you have coming in and what goes out of your bank account each month, and identifying the areas you could cut back on. Even if you start by bringing your lunch from home two or three times a week, you will still actively be saving money. 

Save in the right places 

If you are a first-time buyer aged between 18 and 39, you are eligible to open a Lifetime ISA account in which you can pay up to £4,000 each tax year into the account. The government will then add a 25% bonus on top. 

The cash will remain in the account until you exchange it for your first property, meaning you cannot withdraw the money once it has been deposited into the ISA account. This is a great way to save money as there is no temptation to withdraw the money to your current account, unlike a regular savings account. 

If you are a first-time buyer, it’s a good idea to speak to a mortgage advisor near you who will be able to help guide you through the current housing market in your area and discuss help-to-buy schemes too. 

Sign up for budgeting apps

A good way of keeping track of your finances and spending habits is by using a budgeting app. Every app is different, but they will all help to save you money by syncing up with your bank account so you can keep track of your spendings. 

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Some apps, such as Emma, will automatically track and categorise your expenses across all of your accounts, making it easy for you to see where your outgoings are going. 

Shop around for deals

Saving or applying for a mortgage is the perfect time to tidy your finances. This can include paying off any outstanding debts and negotiating bills and contracts. You may not be able to change this by much but every little will help. 

You could shop around for better deals on mobile phone contracts and broadband packages. Many companies will offer the best deals to new customers, so it’s worth shopping around to see which deals would help you save some extra money. It’s also worth canceling any subscriptions such as gyms, clubs, and streaming services that you don’t use. 

Sell things you don’t use

It can be difficult getting another job if you already work long hours, or you need the spare time you have to look after others. For many, getting another job is unrealistic, especially if you enjoy having a work-life balance, which is why it’s worth finding other ways to get a bit of extra income. 

For any clothes you don’t wear anymore, you could sell them on sites like Vinted or Depop. Although you may not get a lot of extra money from this, having that money in a savings pot is better than having clothes set in a drawer that you’ll never wear. 

You could also sell pieces of furniture you don’t want anymore on Facebook Marketplace.

Saving money for mortgages is difficult, especially with the current climate of the UK at the minute. Following these simple tips won’t massively increase your savings immediately, but they will help you in the long run. Remember mortgage advisors are also here to help you, and they will be able to talk you through the housing market in your desired area.

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