According to latest figures from Nationwide Building Society, getting on the housing ladder is extremely hard with those lucky enough to qualify for a 95 per cent mortgage still needing to find around £18,000 to buy in London, £11,000 to secure a home in the South East, £6,000 in the North and £7,000 in Wales and Scotland.
While there are many mortgage lenders and companies such as www.carcashpoint.co.uk who will do all they can to give your finances a boost, gathering enough funds to put down that initial deposit is far from easy – so here are five crucial saving tips to help you out.
- Take a look at your finances and make cutbacks
It sounds obvious, but reducing the amount you spend each month should make a significant different to your bank balance. We are all guilty of buying things on a whim or having a takeaway we don’t really need, but in order to achieve your goals you must be as ruthless as possible and hang onto every penny you can.
- Cancel standing orders you don’t need
When making cutbacks, it’s a good idea to take a look at your bank transactions and to cancel any standing orders or Direct Debits you don’t need. Believe it or not, many people are losing money each month on account fees that could be eliminated with a phone call or two, while others have simply forgotten to cancel gym, film club or magazine subscriptions.
When you’ve got a decent wage going into your account, a Netflix subscription or animal sponsorship might not seem like a big deal, but if you are trying to gather funds, you’ll need to cut back on luxuries for a while – at least until you’ve achieved what you set out to do.
- Set a budget and stick to it
Once you know your finances inside and out, you can then set a realistic budget – and stick to it. Knowing exactly what you have to spend each day, week, or month, will not only keep you on track but it’ll make it easier than ever to reach certain financial targets within a set amount of time. There are even budgeting apps available these days which will help track your progress and monitor your accounts, so there’s no excuse for letting your finances spiral out of control.
- Make the most of cash Isas
Believe it or not, with an ordinary savings account £2 in every £10 you earn in interest disappears to the tax man – £4 if you’re a higher-rate taxpayer. This is a significant sum to lose, so why not hold onto your hard-earned cash by depositing it into a cash Isa instead? The tax-free Isa limit has now increased to £15,240 for the £2015-2016 tax year allowing those saving for a new property to keep their money safe without it disappearing from under their nose.
- Move in with family/slash your rent
If you want to save for a deposit relatively quickly, it’s important to reduce your living costs as much as possible – and this means either finding somewhere cheap to rent for the time being, or moving in with family rent-free (or almost free), if they will have you. Of course, not everyone has the option of moving in with relatives without being charged (or wants to, for that matter), but if you have the choice, residing with relatives for a short time could help boost your funds.
Saving for your first home is not always easy but the above five tips will certainly help you to get some money behind you.