Saving for a mortgage can seem like a momentous task but there are so many ways that the process can be made easier. We’ve put together a list of ways to help you climb onto the property ladder.
Pay less rent
Live with other people. Family can be a great help when you are saving for a mortgage as family are much more likely to let you rent on generous terms. If you don’t mind this option then this can be a great way to save.
Is there anyway for you to reduce your expenditure? Most people after dwelling on the subject for long enough can probably find a couple of ways to reduce outgoing costs, for instance, are you spending too much money on non-essential items? Maybe it’s possible to spend less on necessities such as your groceries, phone bill or gym membership.
Pay Off Your Debts First
If you have a credit card or loan pay these off as fast as you can. Credit card charges are high compared with savings rates so paying these off first will save you the most.
Is there anyway for you to bring in more cash? Most people have a hobby of sorts but not everyone has thought about how these activities can be used to raise some more cash on the side. If you work part-time have you considered looking for full time employment and, if you do work full time, have you considered taking a second job during the weekend.
If you have been working hard at your job then why not ask your employer for a raise? Many people may be afraid of doing so but, when you think about it, what do you have to lose?
Sell any unwanted possessions online or even think about having a boot sale. This not only declutters your home but also puts extra money in the savings pot.
Knowing the best savings account
Regular saving is the best method for getting closer to your home deposit, saving as much as you can every month will soon mount up so knowing the best accounts and schemes available from the outset will help you achieve your goal quicker.
Regular Savings Accounts
These accounts offer higher interest rates but do tend to have rigid terms which could mean you are only allowed to make limited withdrawals. Both NatWest and RBS presently have a regular savings account with a variable rate of 3.04%, but these rates usually only last for one year. You are not limited to the number of accounts you can open at any one time so you could have multiple accounts with different Banks and Building Societies.
These accounts are specifically designed with home purchase or retirement in mind. You can put in up to £4,000 each year, until you’re 50. The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year. Please note if you make a withdrawal before you retire or buy a home then the government bonus received can be lost.