Do you dream of having your own home? Are you sick of being in your late twenties and still living out of that bedroom you had as a child? Are your craving independence? Wanting to live closer to friends, work, or where you spend most of your life? Perhaps renting is getting too much with overbearing landlords? Then there’s the insecurity of not living in a property you can call your own. Let’s have a look at how to save for a house deposit fast.
Know How Much You’re Going To Need
Firstly, you need to know how much you need for a house deposit. You need to do the maths and figure out that goal. You might be able to get a mortgage that gives you 90% of the value of the property you want to buy, however, you’ll still need to find 10%. The more you can get together for your deposit, the less you will have to borrow and pay back, and the better the rates you are likely to be offered for your mortgage repayments. Once you know how much you need to pull together for your deposit, you will have a target to aim for.
Make Saving A Priority
Once you have that goal in mind, you are turning your attention to how to save for a house deposit fast. If speed is key, you need to make saving a priority. This could mean making sacrifices. Stopping going out as much, cutting back on those night outs and trips down the pub. Cutting streaming services, finding alternatives for entertainment, and perhaps opting for a cheaper place to holiday this summer. Little savings can add up and help you push toward that target number. You might decide to redirect your money from other areas of life into this fund. Especially if you are wanting to gather this deposit quickly.
Open A LISA
Did you know that there is a way to get some free money from the Government if you are buying your first house? If you save into a Lifetime ISA (LISA), the Government will give you an extra £1 for every £4 that you save into it. This is a 25% bonus on contributions up to £4000 each financial year. You can only use LISA contributions if you are buying your first house. You have to have had the LISA open for 12 months before withdrawal. If you think that it’s going to take you a year to get your deposit together, you might as well put £4k into a LISA and gain that bonus of £1000!
Have A Dedicated Savings Account
What if you are unable to use a LISA to get a bonus? In that case, you need to make sure that your cash is being saved in the best possible place. When we are looking at how to save for a house deposit fast, it is important that your money is working for you. You could lock a lump sum away for a certain amount of time. This will ensure that it grows at a decent interest rate. Maybe you are saving monthly and want a separate pot to shift your cash into. Ensure that the bank account you use is earning, at a minimum, the highest possible interest on an easy-access account. These are changing all the time so keep an eye on any other accounts with better rates. Don’t be afraid to shift it around to earn more. Where is your house deposit?
You should also look into saving for what you want to do once you’ve got that house deposit, got the mortgage secured, and actually moved in. You are going to be met with bills pretty much right away and you’ll likely want to do some home improvements such as installing Parquet Flooring too. Consider your deposit and beyond as well.
If you are looking into how to save for a house deposit fast, be sure you have read these tips and you have the information you need to maximise what you can save. You’ll soon be looking around houses, picking the one for you, and putting an offer in. You might even be moved in sooner than you think!
