Thinking about buying your first home? You’re probably trying to figure out how you can save up enough to make the purchase. Well, here’s a quick guide to saving for your first home that you will find useful:
Choose a good savings account
Firstly, you need to ensure you get more from your savings. Standard savings accounts aren’t very good as the interest rates tend to be poor. Instead, open a Help to Buy ISA, and you’ll enjoy far superior interest rates. Plus, the government runs a scheme that boosts your savings by 25%. Instantly, this little switch will mean you save more money thanks to interest.
Set up a standing order
Having a good savings account isn’t enough to help you save up for that mortgage deposit. You must remain consistent with your savings. To do this, set up a standing order that automatically deposits money in your savings whenever you want.
Look at your monthly bank statements and work out how much you can afford to save every month. As long as you have enough left to pay for bills, food, and the odd treat, then you’ll be fine. Save the rest, and you’ll reach your goal quickly.
Check out Help to Buy schemes
We already mentioned a Help to Buy ISA, but there are other Help to Buy schemes as well. One scheme lets you buy a home with just a 5% deposit. This means you have to save a lot less than the usual 20%. Here, you effectively take out an equity loan that buys the property for you. You can buy as little as 25% of the home, then pay the remaining 75% as rent. Eventually, you’ll own the house entirely.
Check out these ideas if you’re struggling to save for your first home. They should help you reach your target quicker and get your hands on a new set of keys.