August 18th, 2016
Whether you’re a first time buyer, a second stepper or are buying your “forever home”, saving for the deposit on a new build home can seem like a mammoth task. Yet when you consider the benefits owning your own home can bring, it soon seems worth it.
Before you even consider what house you want to save up for, you need to assess your current situation. How much can you afford to put away each month from what you earn and how much do you realistically need for a deposit? From this, you can begin to work out where else you can save money from.
If you want to save £10,000 in 2 years, you will need to be putting away £416 per month if you’re saving on your own, or £208 each if there’s two of you. Now, saving for two years may seem like a long, hard process but it is 100% worth it at the end of it and there are options available.
Step forward the Help to Buy Scheme: this Government backed initiative can potentially make your dream home much more affordable.
What happens is this: you save a 5% deposit to put towards your new and then the Government will lend you a further 20% of the house price in the form of an equity loan. This means you only need a mortgage for 75% of the asking price, and you’ll own 100% of your new home…simple!
So, if the most you’d want to spend on a home is £140,000, you need to save £7,000 as your deposit, making your 2 year plan much more affordable as you’ll only need to put away £291 per month. The Government will then lend you £28,000 meaning your mortgage will only need to be £105,000.
Once you’ve worked out how much extra cash you’ve got from your pay day, now is the time to start looking at the little luxuries you could sacrifice to save even more. Here are our top 5 ways to save money and get saving.
So there you have it, some simple tips to save up for your new home deposit. Once you have your deposit, now is the time to look for a house within your budget, as you know how much you have to spend.
To find out more on the Help to Buy scheme click here. If you wish to discuss your mortgage and deposit, please visit or contact your local development who will put you in touch with our independent recommended regulated mortgage advisors.