Top Ways of Saving Money for a House Deposit

With the rising cost of living and increasing inflation, saving for a house deposit may seem like a never-ending hill, but we are here to give you a couple of tips on how to begin climbing it.

There’s no doubt that it is harder than ever to scrape together savings for a sufficient house deposit, so it’s important you start as soon as possible and learn some money-saving tips for the future.

Here are our top tips on saving money for a house deposit…

Start Early

Starting as early as possible with your savings will guarantee that you reach your goal sooner than expected. It’s getting harder and harder to be able to cut costs, so starting earlier than planned will give you an extra couple of years to save.

Saving even £20-£50 per month will be an added extra, and starting as soon as possible will give you the extra advantage.

Don’t worry if you haven’t started as early as you planned, though, jump on the savings bandwagon as soon as you can and begin saving.

Cut Unnecessary Direct Debits

It’s easier to say than do, but cutting unnecessary direct debits will help your overall finances and will leave extra money that can be placed in a savings account.

Seeing whether your housemates would like to have a shared Netflix account instead of solo accounts, cutting out that monthly magazine subscription you never look at or sticking to one music app instead of two can help more than you would think.

The added £5 here and £10 there can combine to be added to your new house deposit!

Eat-In to Help-Out

Eating out can be a lot more attractive than cooking for hours just for one meal, especially when food delivery services exist that allow food to be at your door quicker than you could oven-bake a meal.

With that said, eating out is a lot more expensive than you’d think, and sticking to homemade quick and easy recipes will save you a lot of money in the future.

It can be tempting to order take-out multiple times a week, and we’re not saying to never do it, but limiting yourself to once per two weeks or once a month (if you’re brave) will ensure that you’ve cut out the unnecessary costs of items you could buy for cheaper in a grocery shop.

Open a Savings Account

Saving your money in the right place is crucial, you don’t want your savings to depreciate throughout the years, or just sit in your bank account and not accumulate any added bonus.

Opening savings accounts such as ISA accounts is a great way of seeing profits from saving your money, and it’s a great idea to have a chat with a mortgage advisor like us if you need extra tips on where your savings should be staying.

Boost Your Monthly Income

Boosting your monthly income is a great way of creative more disposable income which can then be placed in a savings account for your home deposit.

There are plenty of ways to boost your monthly income, these include; capitalising on your hobbies and interests, selling old or unused items of clothing or equipment on marketplaces or trialling a freelance ‘side-hustle’.

We understand that most of our lives are extremely busy, but finding a couple of hours a week to capitalise on a side investment may be a great way of boosting your monthly income and setting more money aside for your home deposit.

 

That is all of our tips on saving for a house deposit – whether it’s cutting direct debits, starting a new passion or placing your money in a great savings account, it’s important to begin thinking about a deposit as soon as you can.

If you need any extra help with saving your money, or you may be unsure how to approach a savings account, email us at matthew@mortgagetohome.com.

Good luck on your mortgage journey!