Struggling with a deposit? Tips to get saving…
We all get a little tempted sometimes, right? Those “quiet few” drinks your mate begged you to come out for, that pair of shoes you’ve been eyeing up for weeks, the holiday in the sun you’ve had your heart set on…? Let’s face it, we’re all a little guilty of sometimes splashing the cash when we know we shouldn’t.
And that’s all fine and dandy most of the time. We’re all for having a few treats here and there (and then some). But if you know you’ve got some serious cash to raise, it suddenly becomes that little bit harder. Temptation creeps in because you know you really shouldn’t do it… but that makes you want it even more! Sometimes it’s like you just can’t win.
When it comes to looking for a new home, whether you’re a tenant or a buyer, the idea of handing over a big fat deposit has all those big spenders a little worried. It’s a lot of money to hand over in one go and it requires some serious saving skills. And let’s be honest, saving comes a little more naturally to some than others.
An astonishing 80% of tenants worry about their deposit and its protection, and we can guess this figure is even higher for home buyers. For tenants on the move, you’ll often have to fork out for the deposit on your new home before you get your old one back due to checks and protection schemes, so you’ll need to be smart with your money. For first time buyers, the government’s Help to Buy scheme is a great way to utilise a smaller deposit, but you’ll still need to save quite a chunk of money before you can purchase your new home. You know what that means? It’s time to budget, budget and budget some more.
Now, we’re not saying we’re experts or anything, but we have picked up a few tricks of the trade when it comes to saving for a deposit. And don’t worry, we’re not the type of people to tell you that you need to sit in isolation, drinking nothing but water and eat dust for the next six months to save every single penny you get. Oh no. Our tips mean you can still live your life, but save a little more each month so you can get that little bit closer to your new home goals. If you’re a tenant or a buyer, listen carefully and you’ll soon be kicking back and watching your money pile up…
1) Review your outgoings
It’s always best to start here so you can look at what you’re currently spending and if there’s anything you can do to shrink it slightly. Look at bills, food shopping and anything else that you think you can try and budget with. It might also be a good time to cancel that gym membership that you haven’t used in three years…
2) Cut back where you can
While we would never expect you to cut back everything, there might be a few little purchases you make through the month that you might be able to forfeit in order to save that bit extra. Maybe you could skip that night out down the pub just this once, and do you REALLY need another video game? We thought so. And always remember that you’re saving for a good cause, so while you may feel like you’re missing out in the short term, think about putting your feet up in that cosy new home you could be moved into in just a few months’ time. That should be motivation enough.
3) Raise funds
Got a load of old clothes you don’t wear anymore? eBay them. Been offered some extra overtime at work? Take it. That bike in the garage that’s been gathering dust for years? Sell it. They might only seem like small victories in comparison to what you need to save but every little helps and it could be your ticket to securing you a new home.
4) Save smarter and be realistic
Try and have a goal in your mind of how much you can afford to save each month and stick to it – this should give you an idea of when you can realistically reach your ideal deposit amount. For buyers, it might even be an idea to shop around banks to see where you can get the best interest rates to really make your money go that little bit further.
No matter what your budget, we’re sure we’ll have a lovely new home that's perfect for you, and trust us, they’re all worth saving your cash for. If you’re looking to rent a property, or want to buy a new home, call us today on 0161 637 8336. Ascend work with a team of independent mortgage advisors so when you do have that all important deposit raised, they’ll be able to get you the best mortgage to suit your needs and get you moved in to your new home in a jiffy.