Saving Up For A House Deposit: Four Useful Tips

*This is a collaborative post on saving up for a house deposit

If you’re at that stage in life where you’re looking to purchase your first home, it can be challenging if you don’t have enough money saved for a deposit. With lenders now requiring higher sums and property prices on the rise in the UK, saving has never been more difficult.

However, there are some ways to help get some money together while still being able to live within your means. With a little discipline and careful planning, you’ll be able to put a deposit on that apartment or new build property you’ve been after for so long.

Here we take a look at four ways that you can start to save money for a house deposit.

Be realistic about what you can afford

While this point isn’t necessarily about saving money, it could help to reduce the amount you need for a deposit. You likely have some ideas already about what property you want but might not be in a position to afford this – remember, you need a high enough salary as well as a deposit to be accepted for a mortgage.

Speak to a mortgage advisor who will be able to look at various factors and tell you what amount you’ll be allowed to borrow. From there, you know the amount you’ll need to save for a deposit, which could be less than you originally anticipated.

Pay attention to your spending

If you’re serious about getting money together for a mortgage deposit, now is the time to review your spending habits. You’d be surprised by the amount people usually pay for things like fast food or going out – the pennies can add up quickly without us realising.

Print out your bank statement or view your online banking to figure out the areas in which you can cut down on your spending. You may even find some costs that you can cut completely, such as direct debits that should have been cancelled a long time ago.

Get an additional job to fund a house deposit

A second job could be that useful step to help you achieve your goals. This only has to be temporary and can fit around your schedule so that you work when it suits you. Types of jobs that are ideal for on-the-side work include freelance writing, uber driving, and delivery driving.

While they may not be the most glamorous jobs, the hard work you put in will pay off. And with less free time available, you’re less likely to spend on things like going on nights out.

Move back home when saving for a house deposit

Most of the time, the reason why we can’t afford a property of our own is because we are already losing the majority of our salary to paying rent. While you probably value your independence, it could be worth moving back in with your parents to save some money in the short term.

If you already live at home and pay some money towards the outgoings, you could politely ask your parents if they would be happy to reduce this amount. They’ll likely understand how difficult purchasing a home is in the current climate and will want to help you out.