PROPERTY TO BUY: Saving for a first home can seem impossible, especially with rising house prices. However, new research has revealed the top saving tips for first-time buyers looking to purchase a new home.
Top tips and tricks for buying a new property
Property to buy is on the minds of many Britons, with many people looking to buy a home for the first time. It’s a long and often difficult journey, with saving for a deposit seeming like an almost impossible task. New research from the Post Office Money has now revealed the easy ways first-time buyers can successfully save for a first home. According to the research it takes first-time buyers four years of adjusting and scrimping to be able to save for their first home, with these tips helping along the way.
Top tips for people saving towards their first home
Cut back on the essentials
According to the Post Office, the easiest (and most common) way people manage to set more money aside when saving for their first home is finding ways to cut down on their day-to-day spending. This could be as simple as switching to supermarket basic brands, comparing energy and mobile providers to see if you they could reduce your their bill or even seeing if it’s possible to reduce their rent by moving to a less expensive property.
Map out a deposit goal and stick to it
This is important particularly if putting aside money with a partner – very few people save without assistance from their loved ones and first-time buyers will often be planning to purchase their home with a partner.
When saving money, be sure to agree on how much both partners can commit to save realistically on a monthly basis and hold each other accountable, so it’s more difficult to splurge.
Look for tools that may help, as there are a range of apps and calculators freely available to help plan a savings journey, such as the Post Office online tool.
Can savings be spread out over a longer period?
If the goal seems out of reach, consider how to reduce the pot needed to save, such as buying a smaller property, looking at a different location or considering no-deposit mortgages.
Have an honest conversation with loved ones about financial support
It’s common for first-time buyers to get some degree of financial support from their families as they attempt to get on the ladder. The research actually showed that more than half will do so as they attempt to pull the money together for their first home. When asking for money, be sure to have an open and honest conversation about the terms of the agreement. If they are providing a gift or a loan and if it’s a loan, be clear on what they expect in terms of regular repayments.
Keep an eye on how affordability shifts and incorporate that into any plan
According to the Post Office, four years is a long time in our uncertain housing market and buyers want to make sure they are aware of how things shift while saving. You also need to keep up to date on all of the government Help-to-buy schemes. Up until 2023 first time buyers participating in the scheme, you only need a 5% deposit, with the government lending 20 % of the costs and the rest is made up with a 75% mortgage. You wont be charged fees on the 20 p% loan for the first five years. See below for all Fortitudo’s developments associated with Help to Buy.
Developments associated with Help to Buy
• The Highlands, Fareham
• West Quay Road, Southampton
• Commercial Road, Poole
• Willow Park, Havant
• Statum, Bournemouth
• Canaway Court Poole