Tips for Saving Up that House Deposit

Getting that first house deposit might seem like a mammoth task to get on the property ladder. But it is something that you will need to do to get that dream home. This epic journey has to start sometime and somewhere, so here’s how you make the right moves.

Getting together that first house deposit might seem like a mammoth task, but if you’re to get on the property ladder, it’s something you’ll have to do. This epic journey has to start sometime and somewhere, so here’s how you make the right moves.

Sort out a budget

Use a budget calculator to work out what you earn and what all of your outgoings are. Include regular and occasional outgoings so that unexpected costs like washing machine repairs or new tyres are factored in.

By having all the numbers in front of you, you can see what you can cut back on. The easiest expenses to reduce are things like utility bills, insurance and phone contracts. You can also start taking your own coffee with you on your way into work and save as much as £50 or £60 per month.

Reduce your rent

Rental expenses are usually more than a mortgage, so how are you supposed to find the money for your deposit? If you can reduce or eliminate the amount of rent you pay, then you’re a part of the way there.

You could return to your family home for six months to a year if possible. You’ll need to agree how much you’ll be contributing to the household each month in terms of money and housework and also how long you’re planning to be there for.

You could also downsize – if your current rental has a room or two you rarely use, then it may be time to move somewhere smaller and cheaper. Alternatively, if the commuting costs workout, you could move further out from the town or city.

Getting together that first house deposit might seem like a mammoth task, but if you’re to get on the property ladder, it’s something you’ll have to do. This epic journey has to start sometime and somewhere, so here’s how you make the right moves.

Make your savings work for you

You shouldn’t just deposit your money month after month and leave it lying there, as it could be working a bit harder for you. Shop around for better interest rates as this will help you to raise the money you need that little bit sooner.

If you already have a savings account, think about an ISA as well as it’s tax-free so you won’t be parting with any of your profits.

Make time each month to look at the interest rates offered by various banks so that you can move part or all of your savings into the best vehicles. Do make sure that you won’t be charged for early withdrawals, though. It might be a better idea to use instant access ISAs and savings accounts so you’re more agile.

Getting together that first house deposit might seem like a mammoth task, but if you’re to get on the property ladder, it’s something you’ll have to do. This epic journey has to start sometime and somewhere, so here’s how you make the right moves.

Take a second job

This doesn’t have to mean working the night shift and trying to survive on three hours of sleep every week! You could take up dog-walking in the evenings or at weekends, for example. Or offer your amazing organisational abilities to stressed mums who can’t get on top of the housework.

Switch to supermarket own-brands

You’d be surprised by how much less you’ll be paying each week and how little you’ll notice the change. Keep some old favourites so that you don’t feel like you’re sucking all the joy out of your life. Replace things like tinned tomatoes, pasta and beans for cheaper versions.

House Deposit

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36 Comments

  1. October 8, 2018 / 1:10 pm

    Lots of good tips. With house prices going through the roof, it is getting harder and harder to get a deposit together.

  2. October 8, 2018 / 1:09 pm

    This is something I am starting to think about at the mo so this was a good read. I like the simple idea of switching to supermarket brands to save pennies – makes pounds add up!

  3. October 8, 2018 / 1:09 pm

    Good tips, as saving for a house deposit can seem an uphill struggle. Reducing rent and supermarket own brands are good ones x

  4. October 8, 2018 / 1:09 pm

    Switching to supermarket own brands is such a good idea and something i&#8217ve been doing recenty. I&#8217m amazed at how much difference its made to how much money I spend on groceries.

  5. October 8, 2018 / 1:09 pm

    Saving is difficult but if you make sacrifices in the short term it will pay off in the end, we were lucky enough to move in with my parents for a while and surprising how quickly we were able to save/

  6. October 8, 2018 / 1:09 pm

    We spent years saving up for a deposit for a house. We saved as much as we could by budgeting as much as we could. These are great tips for newbies.

  7. October 8, 2018 / 1:09 pm

    Excellent practical tips. This is something we are aiming towards in the next few years! Reducing the rent is a buggy for us, I don’t know what we are going to do but we’ve got to find a way of reducing it!

  8. October 8, 2018 / 1:09 pm

    Saving for a house can be a real struggle but these are all great tips for helping a bit. I have found shopping in Lidl much more economical and my food shop is down around £20 a week. It all adds up.

  9. October 8, 2018 / 1:09 pm

    It really can be so hard. We were lucky that we managed it, but I do worry for future generations and how expensive it all is… Great tips Anosa! 🙂

  10. October 8, 2018 / 1:09 pm

    Me and my boyfriend have decided we’re going to move back in with my parents for about 6-9 months before we buy just so we can save some more money for renovations when we get a house x

  11. October 8, 2018 / 1:09 pm

    Saving up for a house deposit can be a daunting task but at least you can put the savings you make from some of the above towards that and also be smart by making your money work harder for you with an ISA.

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