Set realistic savings goals
Set goals for what you’ll need to save each month to achieve your overall target.
- Try setting up a standing order for savings, so you’ll save just like paying a monthly bill.
- Saving less over a longer period may be an easier way of achieving your goals.
- Put aside £150 per month for 10 years, for example, and you’ll have saved £18,000. You’ll have also earned interest on your savings, to add to your deposit.
Save with a partner
Saving for a mortgage deposit is a lot easier if you can pool your resources, rather than going it alone. Saving as a pair could help you reach your mortgage deposit goal faster.
Help from relatives
Many people turn to the bank of mum and dad when saving for a mortgage deposit. Your parents or other relatives might be able to help you out with a cash gift.
If you’re lucky enough to get a cash gift from your family, you’ll need to tell your lender. You will also need evidence that your parents won’t be asking for the money back.
Shared ownership
Buy a section of the property and pay rent on the rest through shared ownership.
You’ll pay a smaller deposit with a shared ownership mortgage. This is because you aren’t paying a percentage of the whole value of the house.
But remember, you’ll also have to pay rent on the percentage of the property you’re not buying. You may need to be a first time buyer to get a shared ownership mortgage.
