Buying your first property is a big step. It can feel like a distant dream when house prices seem out of reach and saving up for a deposit feels like a never-ending task. But it’s not impossible. You don’t have to be a financial expert to start building the deposit you need. With the right approach, you can get closer to your goal each month.
Make a budget
First things first: find out where your money is going. Use a budget planner tool to keep track of your income and spending. When you can see where your money is slipping away, it’s easier to figure out how much you can save for your deposit.
Even small savings can help. For example, if you’re spending £5 a day on lunch out, that adds up to £100 a month. It doesn’t take much to find places to trim your spending.
Use the right accounts
If you’re serious about saving for your first home, look into a Lifetime ISA. You can get a 25% government bonus on the amount you save, which is a big deal. For every £1 you save, you get an extra 25p from the government. This bonus could add up to £1,000 a year.
But there’s a catch – you can only use the funds for buying your first property or retirement. Ensure you stay within the £4,000 yearly limit, and it’ll really help grow your deposit.
Take advantage of schemes
The government has a few schemes to help first-time buyers. For example, the Help to Buy: Equity Loan gives you a loan for up to 20% of the cost of a new house, meaning you only require a 5% deposit. Some housebuilders offer to pay your agent’s fees if you buy a new build home in Pontefract.
There are also shared ownership schemes where you buy part of the property and pay rent on the rest. These schemes can make buying your first property a lot more affordable, so it’s worth checking out what’s available in your area.
Cut unnecessary expenses
It’s easy to waste money on things you don’t really need. Cut back on the little luxuries – such as buying coffee every day or having subscriptions you don’t use. These small changes can have a big impact on how much you can save.
For example, if you cut out a £3 coffee every workday, that’s £780 a year you could add to your deposit. Saving for a home is about making sacrifices, but it doesn’t mean giving up everything. Just be smart about where your hard-earned cash goes.
Make your dream of homeownership a reality
Saving for your first property might feel like a long road, but it doesn’t have to be as tough as it sounds. By following these suggestions, you can make steady progress.
Keep your eye on the prize and stay focused. With a bit of planning and patience, your first home will soon be within reach.
