Find Out How Much You Need To Save
It is important to have a specific saving goal. You may not have started officially house hunting, and that’s okay, however you should work out a rough idea of your budget, and this way you can decide on a ballpark estimate of how much you need for a home deposit. For example, if you plan on buying a home at say £250,000, you usually need a deposit of at least 20%, therefore you should be aiming to save £50,000 deposit. This can give you a clear saving goal and make the process a little easier.
Open A Savings Account
It is important to open an account solely for your savings. This separates the money you can spend for the month, making it clearer on how much you have saved and how much more you need to save. In high-interest savings accounts, you can earn interest on your savings meaning that it will grow faster and aid you in reaching your financial goal. It is easy to compare savings accounts online.
Check Eligibility For Government Support
The government has help schemes for first-time homeowners and those looking to get on the property ladder. For example, the ‘Help To Buy ISA’ account allowed people to save money for their first property, and when they were ready to buy, they would receive a 25% bonus from the government to help with the purchase. There are often closing dates and certain eligibilities that must be met in order to use these schemes, but it is always worth checking if one is available to you.
Set A Standing Order
A simple but effective way to help you save monthly for your house deposit is to set a standing order. You should set a standing order every month to go into your savings account and choose a realistic amount (that you can afford). This way, you are less tempted to miss a month as it will be taken out automatically. This simple tip helps you discipline your finances and helps you to meet your goal. You do not have to take any further action after you set up the order, and you never have to worry about missing a payment to your savings account.