Are you renting your property or living with parents and want to get a mortgage but need to save for deposit? These tips will help you get into action with your savings plan.
Cut out pointless spending and prioritize
If you want to save money for e house then the first thing is to reduce how much you spend, this means fighting the urge for take away’s, going out to get drunk, buying new clothes, shopping for un-needed items off eBay etc…
The amount of money people spend on impulse is huge, learning how to cut out those impulses will really help you save money and get your deposit for a mortgage in no time.
Get rid of high interest debts first
If you have credit cards or loans then find out which one has the highest interest rate and pay that off in lumps, you will be surprised how much interest you end up paying back on credit cards some people end up paying the minimum balance for years.
Stop your buying impulses and put the extra cash into paying off the credit cards and loans because the longer you stick to the minimum payment the more money your chucking down the drain. In the long run paying these kind of debts off as fast as you can will save you more money than sticking to the smallest payment possible because each lump payment outside of your minimum payments has no interest so the amount you pay is the amount taken off the balance.
Reduce the number of cars and downgrade
If you own more than one car consider getting rid of one to save money for a mortgage, if you have a high liter engine that has poor MPG then consider selling your car and buying another cheaper car that has better MPG, you can put the profit made in savings and reduce your fuel and insurance bill.
Some of the suggestions may make you uncomfortable, what will people think if I have an older car i’ll look like i’m broke? You need to stop thinking in this way and focus on purchasing that house.
Try living on the cheaper side of life
Try to live on a cheaper side of life by finding ways to do things for free:
- Do you take your children to play centers? Why when there is parks for free, take a pack lunch and go to the park save you self the money.
- Do you eat out a lot or buy take away’s? Cut the habit and start cooking! It’s more fun than you think!
- If you go on holiday a lot why not try a break more local by the coast, you can still have fun and not need to spend as much as going the larger distances.
- If you buy a lot of music or DVDs then don’t there are always places to get them for free.
- Do you find your self keeping up with the Jones’s? This means trying to look as financially capable as friends or family, let it go and let them waste money on the trash they don’t need in the long run you will be the one who comes out on top when you save a large amount of money.
Look for first time buyer schemes
First time buyer schemes are out there to help but help wont come to you so go and find it! With a first time buyers scheme you can get mortgages with lower deposits like 5% and also get large sums of the deposits paid via a zero percent interest loan that is paid off over time. Some scheme’s allow rent and buy where you pay some off rent and some off mortgages these kind of schemes have really low deposit rates.