HOW TO SAVE A DEPOSIT Ways to

How to save A DEPOSIT

There are easy steps you can take to stay on track to make home ownership a reality

Saving enough money to be able to own your own home can seem daunting. Living costs are rising and higher house prices make it ever tougher to get on the property ladder. But don’t despair – this is not an impossible dream. Reduce daily spending

Making small changes to your day-to-day outgoings can really add up over time. Take a look at your monthly spending habits. Write down what you have coming in and what goes out of your account each month. Then identify the areas you can cut back on. Sign up for a budgeting app

A good way of keeping on top of your income and spending habits is to use a budgeting app. Every app is different, but they all help you to manage your money by syncing up with your bank and credit card accounts to help you keep a track of your spending. Change your current living arrangements

Although not an option for everyone, if you can move in with your parents you could be saving a huge amount each month and, in turn, help you reach your deposit target faster.

Earn extra money

There are countless ways you can boost your monthly income. A weekend bar job, babysitting and gardening, as well as sorting through your belongings and selling what you don’t need on Facebook Marketplace or eBay are just some of the ways you can make a little bit extra to help towards a house deposit.

3 of the best

SPEEDY WAYS TO SAVE

1MAKE THE SWITCH If your landlord will allow, try switching your energy provider. In addition, shop around for cheaper mobile phone and broadband packages and cancel unnecessary subscriptions that you aren’t using. 2 OUT OF SIGHT, OUT OF MIND Set up a standing order to transfer money into a savings account each month on payday. That way the money is out of your current account and you are less likely to be tempted to dip into it. 3 OPEN AN ISA If you’re a first-time buyer aged between 18 and 39, you are eligible to open up a Lifetime ISA account. You can pay up to £4,000 each tax year into the account. The government then adds a 25 per cent bonus (£1,000 maximum) on top.

Consider buying with friends

If you’re worried about how to save for a house on your own, sharing the cost of buying a house with friends or family can make the house-buying process more affordable, as well as reducing the cost of living once you’ve moved in.

Get help from family

Nearly half of all first-time buyer transactions this year are being financed by the bank of mum and dad, according to analysis from property group Savills. If you are in a fortunate position to have relatives who can help out financially, it’s a great way to get on the housing ladder. Look into shared ownership

Shared ownership allows first-time buyers the opportunity to buy a share in a home while paying rent on the rest. It frequently works out cheaper than renting an equivalent property. You also only need to pay a deposit on the share that you own. Consider a Help to Buy: Equity Loan

If you’re a first-time buyer in England, you can apply for a Help to Buy: Equity Loan from the government that you can put towards the cost of buying a newly-built home costing between £186,100 and £600,000 (the amount varies depending on where in England you’re buying).