Ways to Save for a Mortgage Deposit

Ways to Save for a Mortgage Deposit - window box image

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Buying your first home is a big step, and if you want to avoid falling into the trap of forever renting, there are several things you can do which will speed up the saving process. Here is a quick guide to get out of rented accommodation and to saving for a house deposit.

Whether you are looking to buy a luxury Meriton apartment or a simple two-storey home, it is likely that you won’t be able to save much money if you are renting. If you feel that you can sacrifice your personal space so that you can save, there are a few options for you.

One option is to move back in with your parents for a little while. However, only do this if you get on well with your parents and live close to them. If moving in with them will add another hour or so to your work commute, it’s hardly worth it more the extra travel expenses. Talk to them about how much you will stay, what you will contribute towards rent and how you will help out around the house.

It is also possible to sub-let your spare room and get a lodger. This will help subsidize the cost of your home and allow you to gain control of your finances and save for a deposit. Before you start searching for a new flatmate to move in, you will need to talk to your current landlord and see if they are happy with what you are planning. They may agree to either of the following options:

  • Advertise commercially for a new housemate and reduce your rent
  • Allow you to advertise and sub-let the spare room in your rented accommodation

Either way, you will be saving money on your rent and able to put more away. Be strong, and remember that this extra cash isn’t supposed to be for extra fun and set up a direct debit to go straight into your savings.

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If neither of the above are options for you, it’s probably time for you to look for a cheaper place to live. Ask around and see if any of your friends have a spare room that they are willing to rent out for a few months – remember to talk to them about rent, bills and what you will do around the house before agreeing to anything. If you have no friends with a spare room, then there are loads of websites available which advertise rooms in shared houses, such as:

A house share will be much cheaper than renting a house or apartment all by yourself, as you will be splitting the cost of the house between several people. This should enable you the wiggle room to save more money and, eventually, put a deposit down for your own home!

It can be difficult moving into someone else’s space and living with them, especially if they are family or close friends and you are used to living alone. Remember that they are probably feeling the tension too, so do your best to help around the house and not make a mess!

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