Tips on Saving for a Deposit for a Mortgage

Let’s not beat about the bush here, when it comes to buying a house, people in this generation are in a far, far, far more difficult position than their parents were a generation ago. Mortgages are much tougher to obtain, house prices have increased drastically, and banks and lenders are much stricter with whom they lend to, and the amounts they lend. Perhaps the hardest part of buying a property for the first time however, or any time for that matter, is actually saving up the deposit to buy the house in the first place.

The magic number is generally 10% of the property’s value, so if you’re looking at buying a property for, say, 100,000 Euros, saving up 10,000 Euros while paying your bills and living your life is far from easy. There are, however, a number of things you can do to save for a deposit without living like a hermit for several years. Here are some tips on saving for a house deposit.

Try not to rent

Okay, though none of us would relish the thought of giving up our independence and moving back in with our parents, or a family member, if you are serious about buying a house then you will need to get your deposit together. For many, this means not renting a property and instead moving back home and paying your parents board instead, which will likely be less than a monthly rent. In the past, once children reached 18 and were classed as adults, they moved out into the big wide world, got a job, brought a home, and that was that. Nowadays however, things are very different. If you can’t move back home or don’t want to, consider renting a room rather than a property and put the money you are saving on rent, to one side for your deposit.

Sell old and unwanted items

Yes, we know it’s a bit of a pain in the backside taking photos of items, listing them on auction sites, and selling them when you have a life to lead, but if you want to save money, this is a very viable option. Selling old and unwanted items will generate some extra cash for you, which you will not miss. Put it into a savings account and watch it grow.

Get a lodger

Assuming you are renting, if you do want to save money it could be worth you taking in a lodger. Now, the first thing you need to do here is check with your landlord that they are okay with you doing so. They will probably ask for a higher monthly rent from the pair of you, but this will still mean that you are saving money in the long run and again, when you are saving money, make sure you set it aside.

Get financial assistance

There are various help-to-buy schemes now in place that are designed to help first-time buyers save for a deposit, so it may be worth looking into those. As well as that, you could consider asking for a loan from a family member/close friend.