How to Save for a House Deposit

Many first-time buyers (FTBs) are struggling to get their foot on the property ladder as mortgage lenders require a large house deposit. It may take many months or even years to save up this amount, but you can save a little bit quicker by cutting back on unnecessary spending.

Research by the Halifax suggests that many FTBs are missing out on potential house deposit savings of £308, and have put together a “quick-fix” top six list of areas to cut back on:

  1. Quit smoking  – Save £160.83
  2. Cancel gym membership – Save £42.37
  3. Cut out morning latte – Save £37.80
  4. Cut out one takeaway per week – Save £35.96
  5. Drink two less pints of beer per week – Save £22.56
  6. Swap a litre of bottled water for tap water – Save £8.68

This is a total of £308.20 a month, or the equivalent of £3,698.44 a year.

Although non-smokers may not be able to save as much, by following the remaining tips FTB savers could put an additional monthly sum of almost £150 towards their house deposit.

Head of mortgage development at Halifax, Jaedon Green, said: “Our research shows that spring cleaning your finances can potentially save first time buyers thousands each year. By identifying a few simple changes to their everyday routine and saving regularly, first time buyers can make a big boost to their deposit pot.”

There are more ways to save money though, and you could save for that house deposit even quicker by swapping driving for cycling and always making sure that you use discount vouchers before you buy anything online. Renters should also look at switching their energy supplier and reading our article about How to Save for a House Deposit Whilst Renting for more ideas.

Please leave a comment if you can think of some more simple money saving ideas which may help a FTB save for their house deposit that little bit quicker…