Securing your first house: Money saving tips
It’s an exciting time – but it’s also incredibly daunting. After all, particularly in some areas of the country, it can take decades for the average person to save up enough money for their first house deposit.
Ultimately, it means some money-saving exercises need to be put into force. This is going to be the focus of today’s article, as we take a look at some money-saving tips that can accelerate the amount of time it takes to own your first home.
Change your lifestyle
The first thing on the agenda is to change your lifestyle. This may be a big one for some people, but it’s a necessary evil.
If you want to own a house, you need to start thinking about how you’re going to make it happen. One of the best ways is to make some lifestyle changes, which means spending less money.
To do this, you need to think about what you’re spending money on, and what you’re spending too much money on.
So, you need to start cutting out the things you don’t need. For example, do you need to have Sky, or can you live with just Freeview? Do you need to have a landline, or can you go mobile-only? Do you need a car, or can you get around by public transport?
And, if you do have a car, can you get a cheaper model? Can you get a cheaper place to live?
As you can see, the list can go on.
Consider a smaller deposit
Another good tip is to consider getting a smaller deposit. This isn’t going to be possible for everyone, but it’s definitely a viable option for a lot of people.
For example, you may find that it’s easier to get a mortgage for a smaller deposit. Or, you may find that it’s easier to get a mortgage if you’re willing to take a longer period to pay it off.
The key is to look into your options – and to make sure that you’re getting the right mortgage for your needs.
Think outside the box
Following the previous point, it doesn’t necessarily revolve around just being flexible with your financing. You may, as an example, decide to move in with family or friends as you save for a deposit. Granted, you’ll need to find a storage company in the interim – but this is often a very efficient money-saving exercise.
Work on your credit score
Another important thing to look into is your credit score. Now, this isn’t necessarily a good thing – but it can be beneficial when you’re trying to buy a house.
You see, the higher your credit score is, the more likely you are to be able to get a mortgage.
Your credit score is essentially a measurement of your credit history – and the better it is, the easier it will be to get your hands on a (cheaper) mortgage.
The best way to boost your credit score is to pay off any debts that you have, and to do this as quickly as possible. There are a whole host of other tips you can follow, as well.
Get a dedicated savings account
Finally, you want to get a dedicated savings account . This is a great way of saving money, as it means that you’ll have a separate account that’s dedicated to your house deposit.
If possible, you should also put this savings account somewhere that’s separate from your current bank account. This is because you don’t want the temptation of dipping into your savings – it’s there for one reason and one reason only.