Tips for Saving a Deposit Faster

lp you save a deposit faster, along with how accessing great mortgage advice is easier than ever if you work with an advisor.

Set a Clear Savings Goal

The first step is to know exactly how much you need to save. Most lenders require at least 5-10% of the property’s purchase price as a deposit. So, if you’re aiming to buy a home worth £400,000, you’ll need at least £20,000 for a 5% deposit. However, saving more can open up better mortgage deals with lower interest rates.

Once you’ve set your target, break it down into monthly or weekly savings milestones. This will make your goal feel much more manageable, so you will be much more likely to stick to it.

Open a Savings Account

Keeping your deposit savings separate from your everyday spending is crucial, no matter how good you think your willpower is. Consider opening a high-interest savings account or a Lifetime ISA if you’re under 40. These are both fantastic ways to boost your deposit savings, and you won’t have to do anything other than regularly pay into the account. If you’re likely to forget, set up an automatic monthly transfer.

Create and Stick to a Budget

Take a close look at your income and outgoings to identify areas where you can cut back. You should cancel or pause unnecessary subscriptions, such as streaming services or gym memberships you don’t use. These may seem like small expenses, but they really add up over the course of a year.

It’s also a good idea to reduce how often you eat out or order takeaways. Cooking at home can save you a lot of money – and it can be fun too! Last of all, plan your shopping trips and avoid impulse buys by sticking to a list.

Reduce Debt

Debt repayments can eat into the money you want to put toward your deposit. Therefore, focus on paying off high-interest debts such as credit cards before you start seriously saving for a deposit. Not only will this free up more money, but it will also improve your credit score – something that is really important when applying for a mortgage. You should also avoid taking on new loans or credit during this period.

Scale Back Your Lifestyle

Making temporary sacrifices can have a big impact on how much money you are able to save. The following are areas which many people can cut back on:

If you currently rent a property, downsizing or relocating to a more affordable area can save you hundreds each month!

If you love to holiday, why not go for staycations instead of expensive trips abroad? There’s so much to see and do right here in the UK, after all!

You can reduce commuting costs by sharing a ride to work with others by setting up a company carpool. If you are able to, see if you can work at home on some days.

Work with a Mortgage Advisor

A mortgage advisor can provide personalised advice to help you save for a deposit and secure the best mortgage deal. They’ll be able to offer insights into how much you can realistically borrow and save and then find lenders that suit your circumstances. It’s not just saving for a deposit they will be able to advise you on either. They’re here to offer expert support throughout the entire home-buying process.

What Next?

Saving for a deposit may be challenging, but it’s not impossible! So why not get your journey started by talking to a mortgage advisor today?