How to Save Up for Your Home Deposit

Buying a home is an exciting time. Saving for a first home, however, is no one’s idea of fun. It requires a lot of personal sacrifice and self-restraint, especially during the cost of living crisis, and remains one of the biggest challenges first-time buyers face. But don’t lose hope. There are a few ways you can speed up the process or even buy a home without needing to save a big deposit. 

Remove any outstanding debt: 

When it comes to buying your first home, the last thing you need is a tower of debt to trip you up. Having outstanding debt affects your credit score, making it more difficult for you to secure a good mortgage repayment plan. Pause large purchases and credit card use, and if you have a car payment or a credit card loan to sort out, prioritise paying this off as soon as you can.

Set savings targets: 

To create a clear progress plan, set a savings goal for every month to keep you in line and prevent you from spending beyond your limits. It’s also helpful to open a dedicated account to keep the money separate from everyday spending and set up a regular direct debit to automatically transfer money into that account.

Consider which type of savings account will work best for you. An instant access savings account is convenient but usually offers a lower interest rate, and if you know you won’t be looking to buy for a couple of years, then look into longer-term savings accounts with higher interest rates.

Save time with Shared Ownership:

Government-backed buying schemes work to help first-time buyers take their first steps towards owning their first home. 

With Shared Ownership, you buy a share of a property (usually between 25-75%) and pay subsidised rent on the remaining share that you don’t own. This keeps deposit costs down, and you can still enjoy all the perks of homeownership. Plus, you also have the option to increase your share over time, a process known as staircasing, until you own 100% of your home. 

Find out more about how Shared Ownership works. 

Government-backed schemes:

It’s worth checking your eligibility for other government-backed schemes that are designed to make homeownership more accessible, particularly for first-time buyers. These include the Lifetime ISA, where you can save up to £4,000 each tax year and get a 25% government bonus (up to £1,000 per year) towards your first home.

Other money-saving techniques: 

Identify any expensive habits: 

If you're not ready to give up a life of luxury and regular holidays, be warned – buying an apartment often means making small sacrifices to the way you live. From bringing packed lunches to work, to cutting down on takeaways and huge shopping sprees, try and work out where you can reduce your monthly expenses. Saving for your home is a marathon, not a sprint, so making these small adjustments could make a big impact in the long run. 

Think about your living situation: 

No one really wants to prolong their stay at their parents’ house, but the cost of rent can be a big impediment to saving for your own apartment. If you're lucky enough to have the option and don’t mind sacrificing some of your own space, living with a parent or friend could get you on the property ladder much faster!

Start selling unwanted belongings:

Selling things you don’t need might not be a significant boost to your house deposit, but it will give you some extra cash to make the saving process a little easier. Whether it’s an antique record player or a disused sound system, you never know how much you’ll make until you give it a go. As well as giving you a small financial boost, it’ll also make the load lighter when it comes to moving out!

You can avoid the biting cost of buying a home with a Square Roots apartment! With a range of Shared Ownership options to choose from, there’s no better way to find a home that you love at a price that you can afford. 

Want to take advantage of Shared Ownership? Enquire today about our apartments.