With house prices falling at the fastest rate in two years, you might’ve started thinking about saving for your first home. Moving on from renting privately can feel daunting, but paying a mortgage is a much better investment.
If you’re just about to start saving for a house, see our top tips below first.
1. Focus on the deposit
When you’re thinking about your new home, it’s easy to get carried away with the furniture and décor – but try not to get ahead of yourself. Before making offers on homes, your main priority should be saving for the deposit, which is always the first hurdle.
There are several different types of accounts offered by major banks to help you save more effectively. Before you open one, do some research and shop around to find the most suitable offer.
2. Build your credit score
Good credit is hugely beneficial when it comes to taking out a mortgage. If you’ve never had to think about it before, make sure you understand before buying.
The most pressing reason for this is that you won’t be able to get a mortgage with a low or negative credit score. Your credit score determines your overall ability to borrow money – and a mortgage is no exception.
3. Find a side-hustle
If you’re finding it too difficult to save solely through your main line of work, you could consider earning a little bit more on the side. Picking up an extra job doesn’t have to be a huge commitment either – many agencies offer zero-hour or casual seasonal contracts.
With the right type of qualifications, you could try working for yourself through freelance writing, tutoring, or even translation. Whichever one you choose, try to keep your earnings separate from your main income and put them straight into a savings pot instead.
4. Be savvy
The current economic climate makes it even more difficult to save money, but there are a few healthy habits to adopt that could help you boost your savings.
The first step is always to reduce your unnecessary spending. Try keeping tabs on small purchases like coffee stops, meals in restaurants, and clothes from the high street. If you’re careful with your spending, you’ll find it easier to save.
5. Consider co-living
Saving for a mortgage on your own can feel overwhelming. If you’ve got a close friend or a partner, it could take a lot of weight off your shoulders and make a lot of sense financially.
Saving for a deposit with a dual income speeds up the process significantly. However, you’ll need to bear in mind that buying a house is a serious commitment, so it’s essential to be confident about the stability and longevity of your relationship with that person.
Saving for your first home takes time but try not to lose hope. With a bit of perseverance and determination, you’ll get there when the time is right for you.