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Saving for a deposit for your first home? Read this!

Posted on August 31, 2022

Saving for a mortgage deposit is the very first thing property purchasers have to do in the home buying checklist. You’ll need at least 5% (more if you’re looking for a better mortgage deal) of the price of the property you want to purchase to move forward.

With a recent study revealing that 47% of the UK’s first time buyers will only be able to make that initial property purchase in the next few years due to help from the bank of mum and dad, it’s safe to say that saving for a deposit for your very first home isn’t easy. As the cost of living continues to rise and lenders introduce more stringent affordability checks, home buyers looking to move onto the property ladder are about to find it even more difficult to do just that.

To help you on your way to buying your first property, we’re here to share the deposit saving tips every first time buyer should know.

Scour the market

Whether you’re looking to buy sooner rather than later or you have time on your side, you need to know how much to save before you can devise a budget that you can stick to. Do your research by scouring the property market to identify exactly what you want from your first purchase and how much it’ll cost you.

Set a budget

Now you know how much you need to save, it’s time to set a budget that’ll make it possible. Be realistic about how much you can save from month to month, and identify early whether the property purchase you want to go for is within your grasp.

Once you’ve calculated what you can save on a monthly basis, set a timescale for achieving your goal.

Reduce your spending

You may be able to reduce your outgoings to achieve your goal a little faster or save more to increase your property buying budget.

There are many tips and tricks you can call upon to keep those outgoings down. Switching your supermarket for a budget friendly alternative, walking or cycling to work instead of driving, selling clothes and belongings that you don’t need, and working a little overtime can all help to keep your costs down and drive your savings up.

Get a little help

Instead of asking for financial help from family, check out the government schemes that could help you buy a home. Many of the initiatives currently available are made for first time buyers. Before you apply however, be sure to research how much this government help will cost you in the long run.

Already ahead of us and saved a deposit for your first home? Now it’s time for the fun part – searching for the perfect property! Find your new home with Hackett Property.