How to save for a deposit
The average cost of a deposit on a house has doubled over the last decade and now stands at a whopping £32,899. Despite this increase, the number of first-time buyers has reached its highest level since the banking crisis hit in 2007. What’s more, in 2016, nearly half of all house purchases with a mortgage were made by first-timers.
Keen to own your own home? Read on for some savvy saving suggestions from the team at Waltham Estates.
Make a commitment
Work out how much you can save, then set up a monthly standing order and pay the money into a savings account. Avoid low-interest instant access accounts. Instead, use price comparison websites to hunt for the best regular saver and fixed term accounts. You’ll get a much better interest rate.
Reduce your rent
Could you move in with your parents, relatives or friends? Renting a room in a shared house can also save on bills. If you need to stay in your current property, ask whether you can sublet a room. Your landlord may lower your rent or agree to a slightly higher combined rent.
Moving to a cheaper area is another option. If this means moving away from central London, Walthamstow is an excellent alternative, with fast trains to Oxford Circus via the Victoria line you can get to Oxford Street in 20 minutes.
Begin by visiting comparison websites to save money on energy, broadband and insurance bills. Once you’ve done this, review your spending habits. It’s all about making a few simple changes, so resist that daily latte from 56 St James, pack yourself a delicious lunch and swap nights out for nights in with friends.
If you’ve got kids, there’s plenty of free family fun to be had in Walthamstow. Why not try the Walthamstow Family Bike Club’s monthly newcomers ride? The William Morris Gallery and the local library also run activities for kids of all ages.
The government’s new lifetime ISA offers home buyers a huge 25% bonus towards their deposit. Account holders can save up to £4000 a year and earn up to £32,000. The ISA is available to buyers aged 18-39 on properties below £450,000.
Alternatively, if you live in London, the government will lend you up to 40% of a property’s value in the form of an equity loan. You’ll pay a 5% deposit and secure a mortgage to cover the remaining 55%. This help-to-buy scheme runs until 2020 and covers new builds under £600,000.
Ready to find your dream home? As established Walthamstow estate agents, we’d be happy to help and talk through your options Drop us a line or visit our office and speak to one of our experienced staff.
Check the Guide to Mortgage Rates Here.