6 Simple Ways To Save For The Home Of Your Dreams

Last update: 22 October 2012
Somewhere between 2007 and now, many of us had our dreams crushed. For some of you, that sporty convertible stayed in the car showroom. For others, the much awaited move into your new home hit the blocks.
home vs money, on set of scales - photo
Getting a mortgage is now harder than ever. Lenders are asking for ever higher deposits and, for some, it would seem that only a win on the lottery or receiving a jaw droppingly large inheritance will help you get into your next house anytime soon.

If you sit back and think for a few minutes, you\'ll start to realise that there are ways to raise some serious cash, fast. But, to save you the effort, I\'ve put together a few ideas that can give your mortgage deposit a serious boost.

Sell Everything You Don\'t Need

Look around your house; how much stuff can you see that you really don\'t need? It\'s been estimated that the average house in the UK has about £3,500 worth of goods that are never used. The easiest way to make some money on all these unwanted items is to post them on eBay. There are listing fees and you\'ll also be charged a commission fee on every sale you make but it\'s a fast and effective way to make money from your junk.

Alternatively, you might want to consider loading everything into your car and heading off to a car boot sale.

Give Up The Luxuries

How many subscriptions do you have? Cable TV, high speed broadband, monthly magazines... they all add up. A medium sized Sky TV package with broadband and home phone will cost you over £76 a month. Put it another way: that\'s £912 a year or nearly a £1,000 closer to your des res! Some of you may be paying even more. If you\'re serious about getting a mortgage, then it\'s time to ask yourself if you really need all of those luxuries.

Wipe Out Your Credit Card Bills

Credit cards are a finely crafted myth. They offer you the chance to live like kings in return for manageable monthly repayments. Each and every month, you pay only the minimum amount required by your lender. You\'ve decided you\'ll pay the main balance off when you get your bonus... but what if that bonus never comes? Here\'s a fact: if you have a credit card debt of £13,000 with a 24.99% interest and elect to pay off only the interest each month you will not clear the balance in your lifetime. Scary, eh?

Put Something Aside Every Month

Aside from the luxuries, how much money do you waste every month? Instead of throwing your money away, why not simply set aside a fixed sum from your wages every month and drop the money into a savings vehicle? If you\'re worried you lack willpower, place the money in either a high interest account or invest in an ISA. Although it\'s not impossible to get your hands on the cash, the time you have to wait is enough to put most people off.

Move In With Your Parents

This may not be the most attractive option available but it makes sense. Recent reports suggest that many people are returning home in order to save a decent deposit. The main reason is the ever rising cost of renting – some unscrupulous landlords have slowly raised rental fees to take advantage of tenants who are locked out of the housing market. As long as your parents are understanding you should be able to live with them for free or, at least, for a very modest sum.

Open A First Time Buyers Account

A first time buyers account is a special type of bank account which would seem to make perfect sense for house hunters but... This type of account doesn’t guarantee you a mortgage offer, although there are other incentives. In most cases, you’ll receive a cash bonus when it comes to extracting your money. Typically, this type of account does not pay a great rate of interest. You may also find that you can only get a mortgage from an approved list. Before you rush out to open this type of account work out if, in the long run, you\'ll earn more money from a standard rate interest account. If this proves to be the case then steer clear of a first time buyers account.

6 simple ways to help you save for next your mortgage. Saving a significant deposit takes time and effort but the sooner you start the sooner you\'ll be where you want to be: in your new home.

Written by James Redden

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