Saving A Deposit For Your First Home
Getting on to the property ladder is an aspiration shared by many people across the UK and with approximately two in five UK households currently living in private / social rented housing with ever rising rents home ownership is becoming more and more of a necessity for financial and lifestyle stability.
Rising rents, increasing house prices and stagnant wages pitted alongside lenders requesting minimum 10% deposits means that buying a house for first time buyers is becoming increasingly difficult.
Despite all of the above at Versus Law we have helped numerous first time buyers achieve the ultimate goal of buying their home. We have put together a few tips to help you reach your goal.
Set a saving goal
Maximise your savings
If you’re saving for your first home, there is free money on offer from the Government. There are two types of Lifetime ISA available, both offering the 25 per cent Government bonus, with the condition that you must be under 40 when you sign up.
Any money you save in these ISAs can only be withdrawn for a house purchase or to fund your retirement. If you need to access your cash for another reason, there is a penalty of up to 25 per cent to pay.
You could also use the Government’s Help to Buy equity loan scheme, which could help boost your money further. The current scheme is due to end on 31 March, but a new one will begin on 1 April. The most important changes are that the new scheme is only available to first-time buyers, and includes a number of regional price caps.
Audit your finances
Look at your bank statements and assess what outgoings or spending habits you might be able to reduce. Cancel any subscriptions you no longer need and contact your utility and tv package providers for cheaper deals. Set budgets for essentials and food and implement no spending days within your week.
Rent is likely to be your biggest expense therefore if you have a good relationship with your landlord, there is no harm in explaining to them politely that you are trying to get on to the property ladder, and seeing if they can agree at the very least to not raise the rent for a period of time.
Improving your credit score is also a great way to improve the number of mortgage lenders who might be willing to offer you a mortgage in the future. There is a great range of information available online on how to do this by doing a simple google search.
Saving for a deposit to buy a home is no easy task but there are things you can do to speed up the process. If you have seen a property and you are unsure how to proceed get a FREE consultation with one of our conveyancing solicitors by contacting us today on 0161 504 7278 or email us at firstname.lastname@example.org. If you prefer, you can use our online conveyancing calculator.