The feeling of accomplishment that comes with being a homeowner is hard to rival. Buying your own house or flat, styling it as you’d like and leaving your own mark on a place is a truly rewarding process.
Despite these many upsides, buying a house is no easy feat. Not only do homeowners need to come up with a sizeable deposit, they must also be financially able to make the regular monthly payments on a mortgage. There’s a lot to consider, but it’s certainly possible with some careful planning and saving.
Are you a first-time buyer? Or are you looking to move on to the next property you have in mind? Wherever you are on the buying journey, we’re here to help make everything as easy as possible.
This guide will help you start putting those crucial pennies aside for your first home, including some handy tips to get you started.
This first tip almost goes without saying, but the number one way to begin chipping away at a house deposit is to take stock of your regular outgoings and make some adjustments.
Before buying yourself a treat, take a second to consider how necessary it is, or if you’re buying it just for the sake of doing so. If the answers to those questions aren’t convincing enough to make the purchase a necessity, maybe it’s best to put it back on the shelf (or take it out of your online basket).
As the saying goes, a little goes a long way.
The number one dent in your ability to save is how much you spend recurringly. Energy, council tax and broadband all eat into our budgets, making it harder to put money aside.
If your bills are taking up most of your income, you might want to shop around to see if there are any better deals out there. Comparison sites are great for this but don’t feel like you can’t just call up your provider to ask them directly for a better rate. Threatening to leave may prompt them to offer you a rock-bottom deal that you otherwise wouldn’t have gotten.
While it’s great to enjoy the idea of spending less day-to-day, it helps to set realistic expectations. Don’t expect to shave off your daily spending by more than half, as this means you’ll go without many of the things you’ve become accustomed to in your current lifestyle.
While being realistic means you may not be able to save quite as much as you’d have hoped, it’ll certainly help put your spending into perspective. For example, rather than cutting out your subscription costs entirely, try looking at lower rates offered by your providers. You may have to sacrifice streaming quality or broadband speed, but you can still continue to enjoy your creature comforts without totally cutting them out.
One significant factor in your daily expenditure comes down to your living arrangements. Private rent has been steadily increasing over the years, leaving some locations completely out of bounds.
As a result, you may want to look elsewhere. Different UK locations have varying levels of rental costs, with cities usually coming in at some of the highest. If you can sacrifice some commuting time to your desired location, you could significantly cut back on your living costs.
The number one way to make it easier to save is to invest time into your employment. If you feel like you’re underpaid for the work you do, consider paying a visit to the job market to see what options are available to you.
On average, an employee stands to gain a 10% pay rise from switching job roles, while most employers do little to improve salaries unless profits are achieved.
What’s the use of saving money if you’re not being rewarded?
Having a savings account allows you to earn interest on top of anything left over in your account at the end of the month. Of course, the exact amount you get is decided via your bank’s interest rate, so you’ll want to choose an account that’s trustworthy and competitive.
If your current interest rate isn’t as high as you’d like, have a look through our personal savings accounts on offer. We have multiple options, including easy access accounts for near instant withdrawals, and we’ve recently introduced the perfect choice if you want to save little and often – our Regular Saver account. You can open the account with a minimum of just £25 and invest up to £300 per month, with unlimited withdrawals.
Many believe that there is only one approach to home ownership, when there are in fact several. By working with a mortgage broker with a proven track record, they'll help you to get the most suitable and competitive mortgage for your circumstances.
They have access to mortgage deals from the whole of market and exclusive deals directly from lenders.
To find out more, take a look at our mortgages for first time buyers here.
We know how difficult it can be for first time buyers to get onto the property ladder. That's why we have a range of mortgages to choose from.
We offer a range of personal savings accounts, including easy access savings accounts, fixed rate accounts, Cash ISAs and notice accounts.
Looking to save more money or make the most of your existing savings? Read our articles for both personal and business savings customers.