The day that you finally decide that you are going to buy your first house is a very exciting one. Sadly, like many people, it is then followed by you realising that you don’t have enough money to even pay for the deposit, never mind start paying the mortgage back. This is why we have put together some tips on how you can save up for your first house. Make sure to keep reading if you would like to find out more.
Set A Goal
Before you start saving for your first house, you need to set yourself a realistic goal. It is very unlikely that you are going to be able to afford to pay off the mortgage initially, so you’ll probably want to start with saving up for the initial deposit. Take a look at some of the houses that are in the area that you’d like to live in. You should be able to find out how much a deposit for one of these houses might cost you. You could even get some advice from a professional on how much the average deposit costs. From here, you can set yourself a goal in terms of how much you need to save and how long you want to give yourself to do it.
Set A Budget
Saving is not just as easy as throwing a few pound coins in a box every few days. You need to save a lot of money for your first house, so you need to cut down on your spending. To do this, you should set yourself a budget and take some of your income each month and keep it aside for your new house. Setting a budget isn’t too difficult, you’ll need to check your bank account and figure out how much you need to spend each month to survive. The rest of the money should be split between the money that you need to save, and you should keep some extra for emergencies or having the odd treat. Set yourself a realistic budget or you will be disappointed when you can’t stick to it each month.
Get A Savings Account
If you are struggling with keeping your savings and your day-to-day money separate, then you should think about getting a help to buy account. You’ll find that a lot of banks can help you out with this and it can actually help you save more money in the long run. You’ll be able to put a bit of money aside each month and at the end of the time it takes you to save, you’ll get an extra £50 from the government on top of every £200 you save up to £3,000. This is really exciting and it is something which you should consider if you are planning on saving up for your first house.
Make sure to take our tips on board if you want to get that dream house!