If you are trying to take the first step onto the property ladder or even if you are fortunate enough to be in a position to expand on your existing portfolio, you will need a deposit for the purchase. The bigger the deposit the smaller your mortgage, great news whether you intend to live in the property yourself or if you are considering renting it to generate an income.
The prospect of saving for a deposit may feel daunting, but follow these tops tips and you will be closer to your dream home in no time!
Set a goal
If you have an idea of the type of property you want and how much the bank is willing to lend through the means of a mortgage, you will have an approximate for how much your deposit should be. Set yourself this goal and to encourage you even further draw up a budget goal and stick it somewhere where you will see it everyday, such as the fridge. You will get great satisfaction marking it off as you get closer to your deposit goal.
Assess your outgoings
Track your expenses for a couple of months on a spreadsheet. You may be surprised to see where your money is going. If you are a coffee lover then may this is the time to kick the habit and grab a takeaway coffee once a week rather than on a daily basis, you will be surprised how much money you will save doing this.
Dedicated savings account
Open another bank account purely for your deposit. Take time to research the different products on the market to find one to suit your needs. Some savings account limit the number of withdrawals in lieu of a high-interest rate which is ideal if you are trying to save as much money as possible.
Additionally, ones that make it hard to withdraw money will stop you dipping in on a rainy day. Move your deposit funds into the savings account on the day that you are paid so you are not tempted to spend it.
Shop around
Are you overpaying for your Internet and phone package? Could your travel costs be cheaper if you bought a monthly pass rather than paying as you go? Take time to look through all of your outgoings to see where any cuts can be made.
Get savvy and request a cheaper package with your existing provider or ditch them altogether if there is a more competitive company on the market. Your providers will be able to tell you your average usage, so you may only need a 3GB Data package for your mobile than the 5GB that you currently have. Click more buy property guide article
Be realistic
You want to reach your goal as quickly as possible, but be over ambitious and you are likely to have a blowout! Making small cuts here will add up quickly, but cut back on everything and you could find yourself having a spending binge reducing your well-earned savings pot.
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