Saving for a mortgage deposit has always been a huge challenge for future homeowners, but the credit crunch has resulted in some tightening of their belts, making it increasingly difficult to get funds together. Here are some simple tips to help prevent these tough economic times from standing in the way of you and your dream home:
Start saving early for your mortgage deposit
The longer you save for a deposit, and as a result the more money you save for it, the stronger your financial position will be when applying for a mortgage. As soon as you seriously consider looking for a house in the near future, it is time to start saving.
Start a budget for your mortgage deposit
Take into account your monthly income and expenditure and set a realistic amount for how much you will put to one side each time you get paid. Be strict with yourself, but don’t set an unrealistic target as you won’t end up sticking to it.
Make savings for your mortgage deposit
Assess your monthly expenditure and see where you can make cuts – small changes on a regular basis can result in big differences in the long-run. Take the time to review any car insurance, utility, or internet providers you may have to make sure you have the best deal.
Use the services your bank offers
Be strategic with your money and move large sums from standard current accounts to high interest accounts and ISAs to make sure your money is working for you.