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Saving efficiently for a mortgage deposit the easy way!

POSTED ON 24 JULY 2020

A mortgage deposit can be one of life’s most expensive endeavours, and saving for it efficiently is vital to ensure you don’t waste your time – or money

 

Saving money: we love it and hate it, and it’s one of the most efficient things you can do in life. 55% of us in the UK have somewhere between £1 and £50,000 in savings, whereas 12% of us have more than £50,000 stashed away. What’s notably significant, however, is that 19% of us have no savings at all and are likely in debt too – a statistic which shows only too well that it’s much easier giving away your money, than it is saving it.

 

Budget wisely

Once you’ve decided to start saving towards a mortgage deposit, the first thing you’ll likely need to do is sit down, either by yourself or with whomever you’re planning on moving in with, and begin calculating what – realistically – you will be able to save each month. Take into account the Stamp Duty Holiday, if you are looking at spending over £300k.

Look at your income, and put it against your outgoings. Cutting back on areas you were previously taking for granted, such as your weekly food bill, as well as gas and electricity usage, can be extremely effective in allowing you to put away even more at the end of the month. Allow for other costs during the month too, such as date night with your partner, car repairs, unexpected trips that may need to be made, and any other miscellaneous things, so that you make that saving plan all the more realistic and accurate. Cut down where you can, and make it an ongoing thing.

 

Make a savings plan

With your buying cost price-range for the property in mind put against what you’ll be able to save over a yearly period: you will then be able to judge how long it will take before you’re ready to place your deposit. Remember, with the Stamp Duty Holiday, you may have more than you expect.

You can set up a standing order with your bank so that money can be transferred into a separate savings account regularly and automatically, without you having to do anything each month. And with apps like Plum, you can automatically round-up any spending and put it into a savings account.

 

It’s not going to be a quick thing, but with the right motivation and willpower, it is possible…

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