How to save for a house deposit

During the current economic climate, it is becoming increasingly challenging for people to acquire a sufficient deposit in order to purchase their first property

During the current economic climate, it is becoming increasingly challenging for people to acquire a sufficient deposit in order to purchase their first property.

Whilst the prospect of moving into a new house and buying a property is exhilarating, the rising house prices are not consistent with the national average wages, which is affecting an increasing number of people who are struggling to save up for an initial deposit and get themselves onto the housing ladder.

Below are some top tips which can help you to save for your deposit in the shortest amount of time possible.

One of your first priorities should be to guarantee that any current savings that you own are providing you with the best interest rates available. By saving your money in a tax-free ISA you will find it more of a challenge to dip into your savings, as some are locked for a certain amount of time. There are a number of banks that also offer rewards of up to £200 for switching your accounts over to them; so it is worth doing your research and getting the most out of your savings.

It is also important to be aware of your monthly outgoings in order to evaluate how much you spend and look at any possible ways in which you could cut back. By making simple changes, such as taking a packed lunch into work or swapping your daily take-out latte for a freshly brewed coffee at home, you could save yourself hundreds each month.

Another way in which you can vastly reduce your outgoings is to move back in with your parents for a couple of months. If they are happy to accommodate you whilst you save up, then offer to cook or clean in return for their hospitality and save your rent money whilst living there.

Finally, it is important to make yourself aware of all fees when buying a new property. Karen Barrett, chief executive of unbiased.co.uk, said: ‘Buying a home is a huge financial commitment, and it is crucial for consumers to factor in all the additional costs, taking into account stamp duty tax, survey and solicitor fees, and other essential checks – not to mention how much you may need to spend on your home once you actually move in.’If you’re looking for property in the Manchester area