Mortgage Deposit for a House Purchase

publication date: May 17, 2010
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

Mortgage Deposit for a House Purchase

Saving for a mortgage deposit for a house purchase might seem like too much hard work, or indeed an impossible task. But you may well be able to do it, depending on how much you earn, how much you spend and how much you can save if you really put your mind to it.

Doing a budget is a pretty easy task (download an example Budget Sheet here). You’ll need your bank statements, your credit card statements and little book that you can write down everything you spend your money on.

Kate Faulkner, Managing Director of Designs on Property has done some initial research to see how possible it would be for first time buyers to save up to £15,000 to secure a mortgage. “It won’t be easy for first time buyers to save for a deposit, but with the right advice, I’m sure they can do it within three to five years”.

The problem for many potential buyers though is they don’t want to make the kind of sacrifices that are required to secure funds, so it is only the people that really want to purchase a home that are likely to be willing to give up lots of treats for a while.

Here are Kate’s top five tips on saving money for a house deposit:-

  • Top Tip One: Know where every penny you spend goes, a tea or coffee a day out could add up to £40 per month and lunch out everyday could be costing you thousands of pounds every year! 
  • Top Tip Two: Organise your expenditure in order of size, so if your rent is highest and parking fees lowest, order rent first. Don’t miss anything out!
  • Top Tip Three: Work out whether you can cut out the expenditure altogether. So if you are renting can you move back to mum and dad’s or rent a room rather than a whole property? Do you need an expensive car or a holiday once or twice a year?
  • Top Tip Four: Look to see if you can get a second job or overtime to help save even more money. Try to find something you get paid for that you would normally spend your money on. For example, work behind the bar, not spending cash propping it up!
  • Top Tip Five: Don’t starve yourself, but don’t lose heart either. You may have a bad week when you spend too much, but make up for it the following week by saving even more money.

AND if you are nearly there with your deposit, think about buying a brand new home as they will often help towards your moving costs as well as chipping in a bit more money to help top up your deposit.

Need help saving for a deposit? Want to know what developers will help with your deposit? Then email or tel 0845 838 1763.

Buy our First Time Buyer Pack and gain access to Kate and her team via email or phone to help you through every step of your purchase.

Need help with a property problem? Have a question? Why not call Designs on Property on 07585 897128 or Contact Us via email.
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