Saving for a new home is an exciting time but it requires planning and discipline. To help you out, we’ve collated advice and ideas from reputable sources to help you save for your deposit.
Whilst you’re saving, why not browse our selection of modern homes available in stunning locations across the South West, and register your interest to be the first to hear about new home releases and development updates.
To set yourself a realistic saving goal input your income and outgoings into a spreadsheet so you can clearly see exactly what you have left over after bills.
From here, review your spending habits and identify subscriptions or services that you can pause whilst you commit to saving for your house deposit.
Set aside a budget for birthdays or celebrations as well as weekly food shops, fuel and clothes.
If a spreadsheet isn’t for you, consider downloading a budgeting app on your phone. A budgeting app can help provide a full picture of your finances by monitoring your spending and categorising transactions to see where you could rein back. Some also send notifications when you are close to reaching your spending limit. The Times Money Mentor have reviewed and summarised some of the top budgeting apps here – take a look!
Once you’ve reviewed and budgeted your outgoings you should be able to see what you can realistically save. Agree an amount and stick to it – discipline is key!
HSBC suggest opening a savings account specifically for your house deposit as it keeps the funds separate from your everyday spending. They also recommend that you consider the following points to determine what type of savings account is best for you:
If you’re aged between 18 and 39, consider opening a Lifetime ISA (LISA). You can save a maximum of £4,000 a year in it and the government will add a 25% bonus to your savings. This is equivalent to a bonus of £1 for every £4 saved. Just remember, you need to have had a LISA open for a year to use the funds and the bonus for your first home.
Have a read of Skipton Building Society’s Guide to Lifetime ISAs here to learn more about the allowances and rules.
If you know how long it will take you to save, could you alter your living arrangements temporarily and move in with parents or grandparents, other family members or a friend to save money on rent?
If not, consider moving into a shared house where the rent is split with others, or move in with a sibling whilst you both save for house deposits.
Here’s some other easy ways to help save for your new home:
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