Top tips on saving to buy a house

11 April 2011

Saving money to buy a house is no easy task. With mortgage lending continuing to be in short supply, home buyers are having to look at more extreme and inventive ways to save the necessary funds to be able to purchase.

The average first time buyer now needs a deposit of £25,000* to climb onto the property ladder. This figure is achievable, but may require some scrimping and saving along the way. To give you a helping hand we have put together a list of our most favoured methods of saving:

  • Get the right account
    Shop around for the most profitable bank account to leave your money in. As you collect more and more you'll wait the most amount of profit to accrue
  • Be regimented
    Take a fixed amount from your pay packet each month and put it into your new account immediately, removing the temptation to spend it
  • Check your mobile phone bill
    Recent research has shown that nearly £5billion** is wasted each year by UK phone owners not on the right contract
  • Do your homework
    With a bit of careful research you can find some great, and affordable properties, currently in the market. There are also properties with incentives attached to help you purchase them
  • Cut out the luxuries
    Most people like to indulge now and again in finer foods, clothes or general pampering. Cutting out these could save you hundreds or even thousands of pounds each year
  • Quit smoking
    Cutting out this £6 a day habit could save you over £2,000 a year, and improve your health at the same time
  • Learn to cook!
    You may not be the next Heston Blumenthal, but staying in and cooking rather than going out for meals can save you a great deal of money
  • Club together
    Get together with a friend or a partner to raise the necessary deposit, and get yourself a new housemate in the process

Although all of the above may not apply to you, it'll give you a good idea into the type of sacrifices and compromises you may need to make in order to buy your first house. If you already own a property, get the process started today with a house valuation.

 

 

 

* According to the Council of Mortgage Lenders (Guardian)
** Research by Billmonitor

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