The troubles of saving for a first time buyer deposit

The troubles of saving for a first time buyer deposit

It seems more people than ever that I follow on our social media accounts are buying their first home. There’s no question that there seems to be more help than ever for first time buyers who are looking to get their feet on the property ladder but getting that initial deposit can still be a huge barrier for people.

Unless you have moved back home to the parents or come into some kind of windfall of cash trying to save money up for a deposit while paying out for rent and other bills can be such a struggle.

Trying to find corners you can cut and savings you can make is one way of trying to make saving for that deposit a bit quicker and the guys over at My Voucher Codes have made a First Home Calculator which shows you how making even the smallest changes to how much you spend in different areas from gym memberships to takeaway can really increase the speed in which you can earn that deposit.

Another important factor in how much you need to save is which area of the country you live in. It’s a fact that house prices in the North are less and you get a lot more bang for your buck. As someone that moved from the South to the North there’s no doubting we wouldn’t have got the house we live in now for anywhere near what we paid darn sarfff. 

If you are stuck in that vicious circle of paying to live and trying to save then the only other option apart from looking at corners to cut is that to look at other ways of earning extra money and increasing that income. As any regular reader will know I always say there is no reason anyone can’t earn an extra £1000 from home each month and that would hopefully help you get to the promised land a bit quicker.

What a lot of people don’t think about when saving for a house and just how much money you might need once you buy the thing! From our my own experience once we had moved in we had a step on the stairs give way, the toilet system broke and had a leak in the roof that came through into one of the bedrooms and this all happened AFTER we had had a survey done as part of the purchase!

Looking back at it I don’t regret how much we spent getting our house and I would be hard pressed to think of any of my friends who have regretted their purchase as well. There’s no doubt it is annoying to be priced out of buying a home because of the deposit (especially when the monthly repayments are LESS than they are paying for rent) but in some ways I’m very glad the days of 115% Northern Rock mortgages are officially behind us as there’s no point in getting yourself into financially difficulty just to purchase your first home.

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Written by themoneyshed

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