Five Tips to Help You Find That Mortgage Deposit

Saving up for anything in these credit-crunch days can be a bit of a strain, but when the item in question is as big – and as important – as a mortgage deposit, the pressures involved can be enormous. How do you get started?

If you’ve been reduced to scrabbling down the back of the sofa for loose change, don’t panic. Here are five tips to help you on your way to sorting out your mortgage deposit.

1. Start early.
It sounds obvious, but it’s true. If you can approach your mortgage deposit with several months (or, better yet, years) of savings behind you, you’re going to be in a much stronger financial position, and many of the worries typically associated with scrimping and saving at the last minute will be greatly reduced. If you’re thinking of trying to get your foot on the property ladder in the not-too-distant future, start saving for your deposit now.

2. Start a budget.
When you’re saving for anything, it’s crucial to know how much you can afford to put away every week or month to reach your goal. Even if it’s only ten pounds a week, that’s still over five hundred pounds in a year – and it soon adds up. Knowing what you can afford to save gives you a target you can realistically stick to, and before long you’ll have enough to meet your needs.

3. Make savings.
Saving is, by definition, not spending money when you don’t have to. Look at your daily expenditure, and see if there are places you can cut down. Do you really need to keep that high-priced gym membership? Would it be cheaper to take a thermos into work, rather than shelling out £2.50 on a coffee house latte every morning? Is your pack-a-day habit costing you more than just your health? Tightening your belt a little can make a big difference, even if you only choose to make it a temporary solution. However, more permanent savings can also be made by taking the opportunity to scout for savings on your car tax, gas and electricity bills, or internet service provider. Better yet, if you do manage to find a saving here, the extra money can go right into your deposit without affecting your way of life one bit.

4. Use the services your bank offers.
If you’ve got a substantial amount of money saved up, stick it in a high interest savings account or a tax-free ISA to make sure your money is working for you, rather than just sitting in a standard current account.

5. Join up with friends.
First-time mortgage buyers who are in a couple typically have a major advantage in trying to save up for a deposit: dual incomes. However, singletons shouldn’t despair. Many lenders are starting to allow joint mortgage deals, letting up to four individuals share at a mortgage – a big help to those who are already looking to buy with friends. It’s certainly worth asking around, as four incomes can make the house-buying process a lot easier.

Featured Products

	Looking for a commercial mortgage?
	Save money with a flexible mortgage