2. How much can you afford?
One of the biggest financial tasks you will ever face is saving for your mortgage deposit. Remember to budget for all the other associated costs of buying a home too such as solicitors, surveys, removals and possibly stamp duty.
Our expert mortgage advisors at Embrace Financial Services will be able to help you plan and budget. To get an idea in the meantime you can use our handy budget planner to see how much disposable income you may have for a mortgage or to save for a deposit.
The Deposit
If you’re one of the lucky few you will have parents who can to contribute. You could pretend you already have a mortgage and start paying into a fund as practise (preferably one you can take the money out of again easily). Not only will you know if you could keep up with the payments but you would be building your deposit fund.
Savings accounts
If you can, get a savings account that restricts your access so you’re not tempted to go on a spending spree. It’s easy to dip into it when something else comes up, which it will.
No more extra luxury items
Work out how much you could save by cutting out the extras like gym memberships, extra nights out at pubs and restaurants, holidays abroad etc... You'll be surprised just how much you spend on things when you sit down to think about it. All of that extra can go into your savings pot.
Keep track of your spending
It's a good idea to try and keep a list of what you spend, when you spend it and what on. There are plenty of smartphone apps out there to help or even a basic spreadsheet will do. This helps you to see where you can make savings and helps you focus on the goal. If it helps, allocate yourself a set amount of spending money each month, week or day and give it to yourself in cash every day. Any leftovers can go in a pot for the rest of the period.
Extra income
If you have the time, can you take on a part-time or evening job? Anything you can do to hit your target, do it. It’s only for a short while and you'll be so glad you sacrificed some time. Be sure not to overdo it though.
Set realistic targets
Set yourself 'realistic' targets to stay focused on that dream. You will make it if you remain dedicated.