Top five tips for saving for a property

19 November 2012

 

With the recession looming, rising petrol and food costs and energy bills set to climb - it can be hard to know how to save for that all important deposit. So we’ve put our heads together and come up with five top tips to help you save for a beautiful new home.

1. Make sure your cash is accessible
Having your savings in commodities like gold or silver or investing in stocks and shares can be risky if you’re looking to buy a property. If the price dips you may need to wait a substantial amount of time before recouping your losses. You need the cash to be readily available and easily quantifiable.

2. Create a savings plan
Create a savings plan and ensure you stick to it, it’s a good idea to create a direct debit straight into an ISA each month on the day you get paid.

3. Make the most of government schemes
Make the most of government schemes such as NewBuy which enables you to purchase a new property with only a 5% deposit.


4. Don’t stretch yourself too farIt’s important to plan for sickness or unemployment in your budget as otherwise, you could land yourself in trouble. Income protection policies start from as little as £20 per month.

5. Get your own back on credit cards
Believe it or not but there is a benefit to having a credit card. By using it each month and paying off the full amount you will be able to boost your credit rating which will stand you in good stead when you come to apply for a mortgage.

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