HOW DO I SAVE FOR A HOUSE DEPOSIT

HOW DO I SAVE FOR A HOUSE DEPOSIT


For most of us the most expensive thing
that we’ll ever purchase is a property and the prospect of saving for that
all-important deposit can be rather daunting. However the key to saving for that lump-sum simply good financial preparation. Making a few
changes to your outgoings which iwill reap big rewards. Take a look through
our handy hints and tips and you’ll be in the new home in no time at all. So speak
to an expert: If you’ve made the decision that you’re ready to buy a property then
an excellent first point of call would be speak to an expert be that financial planner,
a mortgage advisor or a savings expert. It’s important to get detailed overview
of your personal finances and speaking to an industry expert will provide you with that tailored advice which suits your lifestyle, as well as been given some proven strategies to help you save. Whether you’re a saver or a spender it’s important to get the right mindset to save and start
the process by speaking to an expert is a sensible first step. Make the move: So what do I mean? Well with the cost of renting often leaving many with little
money to save for a deposit making a temporary move can be a key factor in
achieving significant deposit. More and more people are actually moving back with their parents for a period of six to twelve months, often paying no rent and
economising through saving on laundry and food costs. If the prospect of living with your parents is totally unbearable then finding a lodger to live with you will
also aid you in that all important quest for a deposit. Know your options: Did you
know that you could buy a property with just a little as a 5% deposit! Knowing what schemes and grants are out there will most certainly help you to
achieve a house deposit. They help to buy shared equity scheme allows
you to purchase a home with as little as 5% deposit and the government or the developer (only available for new homes) will lend you the rest of the deposit. Shared ownership schemes involve purchasing part of the property and then
renting the rest and although you would still need the
deposit to get the mortgage for the part of the property you’re buying the
deposit be considerably lower. An example of that would be if you get a 90 percent mortgage on a 50% share of £150,000 property you’d only really
need £7,500 for the deposit. The Scottish Government also has launched a First Homes Fund in December 2019
which allows every first-time buyer in Scotland the opportunity to access an
additional £25,000 in funding towards the purchase of the first home. So make your savings work harder. Naturally any change you make will have
one similar goal to help you in saving more and more money quickly and making these savings work for you should be a top priority. Open an ISA and use your
yearly cash allowance so you don’t pay unecessary tax . If you don’t already have one, open a savings account and save what you can. Even you think the amounts you are saving are inconsequential they’ll soon amount to a worthwhile value. Shop around and see which bank offers the best interest rate on your savings. Don’t just take one out with your current banking provider as finding a good interest rate could be a big way of helping you to
reach your goal faster. Saving for a deposit can seem like a tall order
so making some sound financial decisions will be the key into being approved for
a mortgage and taking a step onto the property market. Get yourself into the right mind set and be aware of why you’re making some financial changes. Remember that they’re all short-term and you ‘ll see those savings grow faster than you could
ever hoped for. Until next time I’m Jim Parker for Fife Properties TV

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