Owning a home for yourself and your family can seem like a faraway dream for many. Saving for a mortgage and house deposit takes a lot of financial dedication. Even after saving for years, you can often feel like you’re only making a small dent in the amount you need.
Thankfully, due to Government schemes and some strict money saving, you can soon be on the way to buying a home for your family. Here, estate agents in Peckham, London share their advice and expertise about how you can save for your family home.
1. Create a budget
Love them or hate them, budgets are necessary for saving for a home. If you really want a house, sticking to a strict budget is essential. The important thing to remember about a budget is to make it realistic. It may add another couple of years of saving, but you don’t want to cut out things that you do really need, or make the children walk miles to school because you need to save the petrol money!
Look at your monthly incomings and outgoings and decide on a realistic sum that you can put into a savings fund. Some months, you may be able to put in more money, whereas others you may not; December, for example, is never a cheap month.
2. Cut out the luxuries
When going through your budget, think about the luxuries you can cut out. That weekly takeaway, for example, could save you hundreds of pounds a year. Food shopping is one of many areas we can often change to try and save some money. Own-brand supermarket food is a great way to save, while looking online for discounts and offers to use can go a long way, too.
3. Skip a summer holiday
For a family, summer holidays cost a lot of money. It’s not just buying plane or train tickets, but also pre-holiday costs such as clothing and suncream. It’s common for adults to overspend on their holiday by over £200.
When the summer holidays roll around, it can often seem natural and well-deserved to book a holiday for yourself and your family. However, cutting this out or simply changing your style of holiday (nearby weekend breaks and cosy ‘staycations’ are becoming more and more popular), can save a big chunk of money that can go into your savings account.
4. Where to buy and how much?
As well as looking at ways to save and budget money, planning ahead to know how much you want to save will help the process. If you know where you want to live and what you want within a property, this can give you an indication of how much money you need to save.
For example, if you know you want a three bedroom property with a garden in South East London, look at properties within the area to see how much they are. Naturally, prices will fluctuate, but overall, knowing what you’re aiming for will give your saving some focus.
You should also look into how much of the mortgage you will need as a deposit. Different banks and building societies will be willing to give you different rates, so shop around and talk to a mortgage broker, who can advise on what will work for you.
5. Use Help-to-Buy schemes
The government has introduced some ways to help first-time buyers get on the property ladder — one of the best being the Help-to-Buy ISA. This works by putting monthly savings into a specific ISA account. Effectively, the more money you put in, the more money the government will also put in. If you are saving for a house with your partner or spouse, you can both create separate accounts but use the money together when the time comes to invest. The property you decide to buy can be up to £250,000 in value (up to £450,000 in London).
There are other ways to get financial help from the government such as shared ownership, so look into these schemes and see if they are beneficial to you and the area you live in.
The best way to save for a mortgage is through dedication. Once you start to save, don’t go back. In the long run, it’ll be worth it when you and your family have a wonderful home to make lasting memories in.
About the author: Anthony Sargent is the managing director of Fish Need Water — an estate agents in Camberwell. Anthony knows the expense that can come with buying a property, and he is passionate about making sure everyone can get an honest and fair deal on the property they want.