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.
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.
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.
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. R
This is a collaborative post
Mel says
Lots of good tips. With house prices going through the roof, it is getting harder and harder to get a deposit together.
Rachel says
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!
Melanie says
Good tips, as saving for a house deposit can seem an uphill struggle. Reducing rent and supermarket own brands are good ones x
Amanda Millie says
Switching to supermarket own brands is such a good idea and something i’ve been doing recenty. I’m amazed at how much difference its made to how much money I spend on groceries.
lucy mackcracken says
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/
Rachel says
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.
Rachael says
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!
Cath - BattleMum says
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.
Emma Raphael says
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! 🙂
Rhian westbury says
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
Talya says
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.
Kara says
It is so hard to save – I tried getting my kids to set up help to buy ISA’s but they are struggling to save. My daughter has just bought her first flat though, with some help from her Nan
Laura Dove says
Saving for a deposit must be so hard! I was lucky that I bought my first house at 21 with a 100% mortgage and s0ld it for a lot more than we paid. Without that Im not sure how we woudl have saved!
fashionandstylepolice says
I love the tips here. We bought our house almost 6 years ago now. And we used most of these tips.
michelle twin mum says
It can be pretty hard getting a deposit together, my husband and I both went home to our parents for a while to save on rent and that helped a lot. Mich x
Helen Wills says
I do worry about my kids when they want to make a start on the housing market. It was hard enough when I did it, and much harder now. Not easy to reduce your costs these days.
Mellissa Williams says
It is hard to save a deposit for a house. You have some great tips here. I swear by supermarket own brands I really do
MELANIE EDJOURIAN says
These are all really good tips. It’s not easy getting a deposit together that is high enough these days unless you have a partner and are careful with your spending. Prices are really high now.
Mel says
Lots of good tips. With house prices going through the roof, it is getting harder and harder to get a deposit together.
Rachel says
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.
lucy mackcracken says
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/
MELANIE EDJOURIAN says
These are all really good tips. It’s not easy getting a deposit together that is high enough these days unless you have a partner and are careful with your spending. Prices are really high now.
Amanda Millie says
Switching to supermarket own brands is such a good idea and something i’ve been doing recenty. I’m amazed at how much difference its made to how much money I spend on groceries.
Cath - BattleMum says
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.
Melanie says
Good tips, as saving for a house deposit can seem an uphill struggle. Reducing rent and supermarket own brands are good ones x
Rachael says
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!
Rachel says
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!
Rhian westbury says
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
Kara says
It is so hard to save – I tried getting my kids to set up help to buy ISA’s but they are struggling to save. My daughter has just bought her first flat though, with some help from her Nan
Laura Dove says
Saving for a deposit must be so hard! I was lucky that I bought my first house at 21 with a 100% mortgage and s0ld it for a lot more than we paid. Without that Im not sure how we woudl have saved!
Emma Raphael says
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! 🙂
Helen Wills says
I do worry about my kids when they want to make a start on the housing market. It was hard enough when I did it, and much harder now. Not easy to reduce your costs these days.
fashionandstylepolice says
I love the tips here. We bought our house almost 6 years ago now. And we used most of these tips.
Talya says
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.
Mellissa Williams says
It is hard to save a deposit for a house. You have some great tips here. I swear by supermarket own brands I really do
michelle twin mum says
It can be pretty hard getting a deposit together, my husband and I both went home to our parents for a while to save on rent and that helped a lot. Mich x