Here in the UK we are obsessed with home ownership. “Are you renting or buying?” A question often asked when moving and with rent increasing, many find it difficult to even save a meaningful amount. Depending on your circumstances there are a number of things you can do to speed up the process of getting that coveted house deposit.
Move in/Live with Parents
If you have yet to leave home consider staying there longer (assuming mum and dad will allow) to keep your costs down and boost your savings. Moved out already? Finding it difficult to save more than an amount that will take ten years to form a deposit? Have that chat with your parents. Don’t consider it a set-back but a fast track to getting on the ladder.
House shares are not just for students! Want to live in a particular location whilst keeping your costs low? House sharing could be that solution. Whilst you probably have to share the kitchen, living room and bathroom with your fellow house mates the upside is shared bills, leaving more money for that deposit.
They key here is getting half-decent flat mates, so if you have any friends in a similar situation consider teaming up.
Move to a Cheaper Location
If you can’t hack going back home or the thought of dealing with house mates results in a panic, consider moving to a cheaper location. For hubby and I that was a move from London to the good old city of Manchester (where you can spend a third of your income and still get a decent place). Your move may not need to be so far, moving further out from the town or city centre will help. Nonetheless don’t get caught out replacing offsetting rent savings by higher commuting costs.
Get your Money Working
You’ve managed to save some money already. The last thing you want is it sitting there doing nothing. With interest rates on saving account down in the dumps you will find current accounts that offer more for your money. Have a look around, spreading your money if need be to get the best rates for your hard earned cash.
First-time buyers under 40, shouldn’t forget the new Lifetime ISA. Available from 6th April 2017, savings must be used for either a house deposit or locked up until age 60 (with a view to funding later life). An annual government contribution of 25% (subject to a maximum limit) is up for grabs and can used towards your house deposit.
Get help from Parents
Good old Bank of Mum and Dad. For those whose parents have some cash to spare. This could be an option to fast track your way to home ownership. Bank of Mum and Dad is now the 10th biggest Mortgage Lender in the UK, so you won’t be alone if you decide to boost your deposit this way.
Buy with a Friend or Relative
As the saying goes a problem shared is a problem halved. Could your deposit struggle be solved by buying with a sibling or good friend? Buying with someone else isn’t without its risks. Relationships can and do change, so be sure to have a legal agreement in place covering things such as:
- Terms of co-habitation (rules around guests, etc)
- What should happen if one of you wants to sell and the other doesn’t
- Process for managing disputes
On the plus side it reduces the amount you need to save as an individual, making it easier to secure your deposit in a short space of time.
Cut your Monthly costs
You’d be surprised how much our habits waste money. From driving errands we could walk to those “harmless” trips to the coffee shop that quickly add up. Think you have some wastage in your monthly spend have a read of the posts below and see if you can find some easy savings:
Get a Side-Hustle
With job security a thing of the past, supplementing your income through side-hustles is becoming more and more common. Whether it be reselling items, completing online surveys, mystery shopping, an additional job on the side or starting a blog, there are so many options to explore.
Are you currently saving for a deposit? What has worked for you? Already a homeowner? Please share your tips for getting on the housing ladder.
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