2010 - The Year of Saving For a Deposit!

Its official, you CAN save for a deposit and you CANStage three: Check what savings you have - are you
afford a home - if it's what you really want! It'smaximising their returns?
funny that we consider the time since the millenniumIt might be you have some money put aside and it's
as the ONLY time when first time buyers can'timportant you make sure they are in the best
afford to buy a home. Especially as when I firstsavings plan you can, especially while interest rates
bought in 1991, I couldn't afford a property on myare low. Using your ISA allowance is essential as you
own and had to buy with a friend and only 50 yearswill save on paying tax on any interest you earn.
ago, only approximately one third of the country wasLook for savings returns on accounts where they
lucky enough to be a homeowner!offer better rates for putting the money away for
Stage one: Work out how much you spend eachlong periods of time. Check Which? Best Buys and
monththe Saturday/Sunday papers.
Many of us don't really track exactly what we spend,Another tip is to find a good building society that
so it's worth creating an excel spreadsheet (or signoffers 5-10% deposit mortgages for its own savers.
up for access to our free excel spreadsheet whichThe papers are now saying that most mortgages are
will do most of the work for you!). It's essential tobeing given to people that can prove they can save
find where your money goes. When we did this withand manage their money well, so look for local
potential first time buyers, we found people spendingbuilding societies such as the Nottingham Building
£50-£60 a MONTH on just teas andSociety.
coffees at the likes of Starbucks or Costa Coffee.Stage four: Don't blow it!
Stage two: Look at what you can cut out for theIt's easy to think that by saving a few thousand
next year or twopounds it doesn't make a big difference, but over
The last 10 years has given us a false expectationthree years that's six thousand pounds - enough to
that we can have what we want when we want.get you well on your way to buying a new home.
Well that has come to an abrupt end! It doesn'tKeep going, it'll be worth it in the end.
mean though that we can't have what we want, weStage five: Work out the Best Deals
just have to cut a few things out of our lives in theThe first house might not be your dream home or in
short term to get it.the area you ideally want to live. But most of our
For example, I drink tea all day everyday - about 17parents and grandparents didn't start off in the
cups! I used to buy them when I was out and on thehomes they have now, they took several times to
road, but when the costs went up from aroundbuy and sell to live where they wanted to.
£1 to £1.59 - or more, I felt for a 2pNew builds are now and for the next year or so
teabag, a cup and a bit of hot water, this was notgood value for money and for serious buyers will also
how I wanted to spend my money, so I take a flaskhelp you with things that are stopping you from
on the road and reckon this saves me aroundbuying such as paying the stamp duty or even paying
£30 per month.your deposit. You'll still need a few thousand for any
Think too about whether you really need to upgrade'incidentals' that happen to the home (even new
your car or whether you can find a cheaper holidayhomes have things that go wrong) or to help pay
this year or not - the UK is a great place to be andthe mortgage if you get sick or have any problems
days out around where you live, or visits to Ireland,work wise.
Scotland or Wales can be fab. OK we don't have theSome people who are selling their home may even
best of sunshine, but we do have fantasticbe able to help out, accepting a lower deposit at
countryside, historic buildings and some of the mostexchange stage and you may have a family member
amazing coastal walks that exist worldwide. Takekeen to invest in property that may buy a half or a
time to enjoy it! And if I haven't convinced you, getquarter of a property with you that helps you 'get
a late deal to Spain and have the sun and fun youon the ladder'. You'll need to have a good contract in
need at a bargain price instead.place (call us for help) so that if either of you want
If you can, think of moving back home for a year orto sell you can.
moving in with a friend who might be struggling toThink you can't save for a deposit or that you'll
pay their mortgage, or a good quality room to rentnever be able to afford a home of your own? Then
and save as much as you can on your housing costschallenge us to help you! If we can find a way to
so you can put more towards your deposit.help you we will.