Trying to save for a home can seem impossible. There’s an endless amount of paperwork, rising house prices and credit scores to contend with. That said, the first thing you need to consider is saving for a mortgage. These days, many mortgage lenders are willing to accept a 5% deposit on a home, making that saving process that little bit easier. Still, you’re going to need a few thousand pounds to put down on a property.
So, how can you start saving for a mortgage fast?
Set Up An Automatic Payment
One of the best ways to start saving is to set up a monthly automatic payment to a savings account of your choice. By doing this, you don’t need to remember to save money, and you can simply start saving with a small amount – small enough that you don’t notice it. Ideally, set it up for just after payday so it’s not making a huge impact on your income.
If you’re renting, consider downsizing in order to pay less rent. While you may have to live in a less modern property or a different area, it can make a massive difference to your savings fund. The more rent you save, the more money you can put into your savings pot.
If you have a spare room, consider sub-letting it to a friend or relative. You’ll need to check your tenancy agreement first, but you could easily make a couple of hundred pounds per month. The ‘rent a room’ scheme allows people to earn up to £7,500 without paying any tax.
Reduce Your Bills
Saving money on your outgoings can add extra money to your mortgage deposit fund. Use a price comparison checker to see if you could save money on your utility bills, internet or car insurance. You could also try reducing other expenses, such as your grocery bills.
Make More Money
If you’re struggling to cut down on your spending, why not try making money instead. There are many things you can do to make extra cash. A few ideas include getting a second job, becoming an Uber driver, starting a blog, selling on eBay, flipping furniture on Facebook, and selling digital goods on Etsy.
Get Money Back On Your Spends
Cashback sites are a great way to start earning money back on your spends. With a cashback site, you make a regular purchase by clicking through their link in order to earn a percentage back. For example, making an order at The Body Shop may offer 10% of your purchase back through the cashback site. That means, if you were to spend £30, you’d receive £3 back. Cashback sites can work in your favour if you have to make a necessary purchase. If you need to get car insurance, a new pair of glasses, or a supermarket shop, using a cashback site like Topcashback can help you to save money.