Top 10 Tips for Saving a Deposit

January 18, 2012 | Author: | Posted in Finance/Mortgage

The cost of buying a home for first-time buyers is more than £100 cheaper a month than renting says the Halifax but The Sunday Times warned homebuyers that they will find it increasing difficult over the next 10 years to buy property. This comes after a recent report published by the National Housing Federation predicted that home ownership in England will drop to 63.8% making it the lowest since the mid 1980’s.

The report claimed that strict lending criteria, shortage of properties and high deposits were responsible for the 8.7% decline in home owners since 2001.

However, Arc Property Solicitors believes that buyers should be encouraged by latest figures indicating that 49,239 new loans were approved for house purchases in August 2011 – the highest level since May 2010.

In addition, Grant Schnapps, Housing and planning minister, commented in a recent BBC Radio 4 interview that the government were doing all they can to increase the amount of housing in England.

Many first-time buyers would agree that saving for a deposit is the hardest part of getting on the property ladder but there are options out there for buyers other than the 100% mortgage.

So to help you on your way Arc Property Solicitors have put together our Top 10 tips for saving a deposit for first-time buyers.

The average cost of a first home in England is £120k, so if you were to opt for a 5% deposit you would need around £6k and if you are moving in with a partner that’s £3k each.

1. Set aside £250 each per month (each) for one year
2. Put your money into ISA’s & Savings Accounts
3. Consider an interest free loan from parents / family members
4. Move back in with relatives to save on rental costs
5. Reduce unnecessary expenses such as TV packages & subscriptions
6. Get a part time job
7. Buy with a partner of friend to reduce the amount of deposit you will need to pay.
8. Set a food budget and opt to eat at home – reduce meals out, take-aways and those morning coffees
9. Walk or take public transport instead of using your own car where possible – or consider selling your car if you don’t really need it.
10. Enter competitions after all someone’s got to win, right?

Learn more on conveyancing fees or cheap conveyancing quotes.

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