Property is usually a sound investment and everyone wants to get onto the property ladder if they possibly can. It’s easy to do our maths and find out what mortgage repayments we can afford, but the sticking point can be finding the deposit. 

Lenders are now offering larger percentage mortgages than a few years ago. However, it’s still worth remembering that the larger the deposit you can put down, the more likely you are to be offered a mortgage and the less you have to pay back.

If you want to buy property and you need to save a deposit, here are some ideas:

1.     Move to a cheaper rental property

If you’re hoping to buy a house in the near(ish) future, the chances are you are currently renting a property. When you first started renting, you probably chose a property within your means. However, if your rent is taking all your income and not allowing you to save, it’s a good idea to move somewhere cheaper if you can. Consider finding somewhere smaller, or in a cheaper area. You might even consider moving in with family members. 

Whatever option you choose, remember to bank the money you save each month. For example, if your rent goes down by £200, remember to set up a standing order so £200 goes from your current account to your savings account every rent day, so you’re not tempted to spend it elsewhere. 

2.      Review your outgoings

Use comparison sites to find the cheapest utility bills and insurance options. You could reduce your outgoings by changing your utility provider. 

Look at your bank statement too and see exactly where the money is going. Do you have old subscriptions and memberships you could do without? If any of your financial arrangements with websites isn’t giving you value for money, cancel it and put the saving towards your house deposit. 

Again, remember to put what you save into the right bank account so you don’t spend it by mistake!

3.     Get everything you’re entitled to

You might be entitled to more government support than you thought you were. Check your child tax credit and working tax credit applications are all up to date so you’re getting everything you’re entitled to. 

It’s also a good idea to check whether you’re eligible for Help to Buy or other government home-ownership schemes. Find out more here.

4.     Tighten your belt

There are lots of ways even the most frugal of us can save a little every week. Remember, even if you tighten the purse strings now, you can always treat yourself once you’ve achieved your house deposit.

If you have the clothes and home necessities you need, stop buying things. It will also make packing to move easier! If you do need to buy something, try and get it second hand, or borrow it for free from Guildford’s Library of Things.

Cook from scratch – takeaways and ready meals are an expensive way of feeding yourself. Create a weekly meal plan and use it to write your shopping list. You can also bake for friends instead of buying them Christmas or birthday presents. 

Never drive if you can walk – it’s better for the planet and your health, and you can put the petrol money towards your house deposit. Depending on your circumstances, you might be able to manage without a car altogether.

Find your cheap thrill. Fun doesn’t have to be about spending money. Consider a walk in the country, some satisfying voluntary work, coffee (at home!) with friends or YouTube yoga. Whatever you’re into, you can find an inexpensive version with a bit of creative thinking. 

First time buying with Cobbles

The Cobbles team love helping first time buyers get onto the property ladder. If you’ve found this blog helpful, you might also like our three tips for getting your offer accepted – find out more here.