Five steps to saving for a deposit

Saving for a deposit for a first-time buyer can be one of the toughest hurdles. Acting quickly can you an advantage, letting you seek government help, signing up for high-interest savings accounts where your hard earnt money will grow the fastest. Below are tips to help you get on the property ladder faster.

 

Help To Buy ISAs

Help To Buy ISAs can be one of the best ways to save for a deposit. The government will add 25 per cent to your savings, up to a maximum of £3,000, you can also receive anything up to four per cent in tax-free interest over the duration of your saving.

Help To Buy ISAs don’t only apply for first-time buyers, they can also be used if you already own a home or if you’d like to save as part of a property club.

• Savings are capped at £200 a month
• A maximum £1,000 initial deposit
• It will take more than four years to save £12,000
• After four years you’ll be able to unlock £3,000 of government help

Bank Smart

When saving for a house you don’t want to be wasting your time on banking gimmicks and unwanted services so don’t waste your money on monthly subscriptions. On the other hand, perks such as money back on purchases can be worth it so shop around before choosing your bank.

Manage Debt

If you have a credit card, we recommend you pay any debt off to avoid hefty interest charges.

Loyalty Cards

Don’t dismiss how advantageous loyalty cards can be. Shop with loyalty cards regularly. Take advantage of extra-points deals and money off coupons.

Go Outdoors

Take advantage of your local parks, design yourself a free outdoor training program instead of going to the gym. You can also join many outdoor local sports clubs, their subscriptions are often much cheaper than most gyms.

Originally published 1 September 2017. This article is part of the MCR Homes archive.