How to Start Saving For Your First Home

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Wherever you're looking to move, it’s worth knowing how to save effectively and productively. Here's how to start saving for your first home

Thinking of buying your first home? This milestone is one worth celebrating, but the process itself can be daunting and exhilarating in equal measure.

Saving enough to make an offer on a new home requires discipline, careful planning, and a sensible approach to your spending. Even with asking prices falling overall, there are still discrepancies in house prices across the UK, with some areas remaining costly.

Whether you’re buying in a commuter town or a rural village, it’s worth knowing how to save effectively and productively.

Saving for your first home: Five steps to success

1. Work out a realistic budget

The best place to start is working out how much you can afford to spend on a house. Look at your own income along with that of your partner (or anyone you might be moving with) before you start searching for properties.

The required deposit will depend on the type of mortgage you get and the value of your property. You should talk to banks and get a ballpark figure, which will be key to setting your savings goals. Speaking to a finance professional could help you get estimates for other fees, including solicitors and conveyancing.

2. Be financially disciplined

Knowing how much you’re spending, earning and borrowing will help immensely. If you’ve never worked out your monthly incomings and outgoings before, the process might feel long-winded but it’s surprisingly simple once you get started. You should:

  • Total your earnings, including bonuses or side-hustles
  • Review your debt, identifying opportunities to pay back early
  • Check your credit report
  • Set or evaluate specific financial goals, including emergency funds

With an acute awareness of where your money is going – and how much you’re getting – you can put together a more sensible plan for buying your first home.

3. Use tools and moneysaving programs

Instead of heavily restricting your spending, why not switch up your habits and look for savvy ways to save? Look for one-off deals ahead of time, especially when it comes to property services and banking deals. Just make sure to keep an eye on your credit score in the process.

Thanks to partnership between lenders and home builders, many new build houses offer financing options built for first-time buyers. These not only help you to lower the upfront costs but could give you a better deal overall, getting you moving into a house you love sooner than you’d have thought.

4. Set small goals and milestones

Lastly, saving for a house might take longer than you’d expect, so it’s important to stay motivated. Keep your savings goals on track by setting small and achievable goals, perhaps on a monthly or quarterly basis. Watching your progress in real time will keep you feeling confident that you can work towards the best outcome.

Just remember to prioritise your savings, too. The more money you save, the sooner you’ll be able to put down a deposit on your dream home.

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