If you want to get out of rented accommodation – who doesn’t, and buy your own home, then you are going to need to start saving.
50 years ago, you could turn up at the bank, request a 100 percent loan, get it approved and buy your house, but those days are long gone. Today, if you have any chance of securing a loan for your property, lenders have to see evidence of savings – also known as a deposit.
If you want a place of your own to call home – somewhere where you can paint the walls whatever color you want, then you’d better start saving.
To help you save for your deposit as quickly as possible, we have put together some simple tips below. It can be hard to start saving, but with these tips, you can make saving much easier for yourself.
Save 10 percent of what you earn
Instead of spending each paycheck, save 10 percent of it. When there are things you want to do, it can be hard not dipping into your savings, but if you want a house of your own, it’s vital that you don’t.
Each month put 10 percent of what you get paid into the bank and leave it there. If you struggle not to touch your savings, why not open a fixed term ISA and deposit your money into it?
Sell stuff you no longer want
Okay, so selling your old stuff isn’t going to bring in thousands, but as every penny counts, it’s worth doing. Sell your old unwanted items – clothes, DVDs, electronics, on eBay and put the cash you make into the bank.
Pay off all debts
This isn’t exactly, a straightforward tip for saving up, but to be able to get a mortgage, you must have no debts. By paying off your debts, you will be saving money on the interests payment, and so will be able to save more in the long run.
Paying off your debt is a must, as it will increase the amount of money you can borrow. You see, when you apply for a loan, not only is your credit score checked, but your application is also checked by an appraisal company. If you have debts, then your application is more likely to be rejected.
It might not be fun cutting the luxuries out of your life, but if you want a house of your own, then it’s necessary. The easiest way to start is by cutting all the luxuries out and putting the money you saved into a savings account.
Things like getting a takeaway every Friday, going out for dinner each weekend, buying new clothes, etc. should be cut out. It might not be nice cutting these things out, but like we’ve said, if you want a house of your own, you will need to sacrifice your spending.
Saving up enough money to put down a deposit on a house can be difficult, especially as it can take some time to do. But by following these simple tips, you can make saving for your deposit a little bit easier.