Speed Up Your Savings: Raising a Mortgage Deposit
Getting a foot onto the property ladder is one of the best things you can do to secure yourself a brighter financial future. It gives you stability and security, and every penny you pay in is going towards something that you own- as opposed to rent which well all know is ‘dead money.’
But securing yourself a mortgage is hard, mainly because you need at least five percent of the home’s value to put down as a deposit which works out at thousands of pounds. To get a mortgage from a high street lender you will also need good credit, although according to 1st uk mortgage guide there are lenders that specialise in those with adverse credit. If you’re currently in the process of saving for a mortgage deposit, here are few ideas for getting there quicker.
Whether you’re looking to enter the property market, or just looking for general advice and tips on mortgages and money management, have a quick look at the Own Up Blog.
Make Cutbacks
Of course you still want to live an enjoyable lifestyle, but making cutbacks and saving as much money as possible means the quicker you will raise the cash you need. Instead of spending on takeaways and work lunches, prepare and cook your own meals which will work out much cheaper. Walk or bike to work instead of taking the bus, and cancel things like digital subscriptions (Netflix, Amazon Prime, Spotify) if they’re not being used as much as they should be. Set a budget and stick with it, putting all extra money you have towards your savings.
Sell What You No Longer Use
Chances are you have hundreds, maybe even thousands of pounds in unused items around your home. Clothes, books, jewellery, technology like phones where you’ve upgraded. You might even have antiques in the attic. Use this as an opportunity to declutter, selling items online or on local selling sites. Use the money you have towards your savings, you could earn a good chunk!
Work From Home
These days, there are lots of legitimate ways you can earn money from home. And best of all it’s completely flexible, you can do it around your full time job whenever you have time. Sign up to a freelancing site and take on some work during the evenings and weekends. If you already write blog, look into ways of monetising it. You could even start a home based business. Any money you earn could go straight to savings, and it’s possible to earn a good amount if you’re lucky. Having another stream of income could certainly make it quicker to reach your savings goals. You don’t even need to leave the house or take on the commitment of another job.
Look into Government Schemes
Depending where you live, there might be help available to you as a first time buyer. One scheme is where you put money into an ISA and the government will boost your savings by 25%. So for every £200 you save, you’d get £50 extra just for saving in this way. Do some research and find out what’s available to you, in the place that you live.
Saving for a mortgage deposit is hard work and takes the average person or couple a good number of years. By doing these things, you can get there a lot quicker.
*This is a collaborative post.
