The Easy Way To Save A Deposit For A House*

*This is a collaborative post*

If you've watched the news in the last year, you’ve probably realized that it’s not a great time for first time buyers. We’re constantly hearing doom and gloom stories about how impossible it is for people to get onto the property ladder when house prices are constantly increasing. While it’s true that things are difficult, it’s not impossible for you to save for a house. It’ll take a lot of hard work and dedication but if you really want to, you will be able to find that money. Here’s how to do it.

Pixabay

Clear Your Debts

If you’ve got any outstanding debts, that’s money you’re paying out every month which could otherwise be going into a savings account. The sooner you clear those debts, the sooner you can start putting a significant amount of money away. Get in contact with some debt consolidation companies and see what they can do for you. They’ll usually be able to consolidate all of your debts into one repayment which reduces your interest rate and makes the repayments more manageable. In some cases, they’ll even be able to negotiate a lower price with your creditors. Once you’ve paid off all of those debts, put that money straight into a savings account.

Buy With Family

Don’t panic, this doesn’t mean your mum and dad will be living with you in your new house. But if they’re looking for an investment opportunity, ask them if they’d be willing to consider paying part of the cost of the deposit and the mortgage repayments. When you buy another house you could consider renting, or you could sell for a profit and all take your share. Just make sure that you agree beforehand exactly what will happen if one party wants to sell their share and the other doesn’t, you don’t want to end up in the middle of a family feud.

Help To Buy

If you’re struggling to get the money for a deposit together, there is help out there. The help to buy scheme is designed to help first time buyers increase their savings and get onto the property ladder for the first time. You’ll usually need to save 5 percent of the deposit and the government or the property developer will lend you the rest, up to 20 percent. The loan will be interest free for 5 years which makes it far easier to pay back. This is such a help because instead of trying to save up £20,000 for a deposit, you’ll only need £5,000 initially. Just remember that you’ll need to pay that money back eventually so think about whether you’ll be able to afford that or not. However, you should be aware that this is only available for new build homes and there have been recent reports of lots of issues with new builds that have been put up in a rush without the proper checks being done along the way.

Saving for a deposit seems like an impossible mountain to climb, but follow these simple tips and you can manage it easily.

FOLLOW GIRLGONEDREAMER:

Twitter | Facebook | Bloglovin' | Instagram

Subscribe to GirlGone Dreamer by Email