saving a house deposit
Saving and Buying

How we saved a deposit and bought a house at 20 years old

How we saved up a house deposit

Saving money is never easy, especially when paying money out to rent. Me and Tom were really lucky to have had the luxury of living with our parents until we saved a deposit to buy our first home together.

We saved our deposit in Help to buy ISAs where we both saved £200 a month with the view to the government adding a 25% bonus of our final figure at the time of purchase. You can no longer get a Help to buy ISA however the Lifetime ISA is a similar alternative that is still available from most banks.  Both of us had a separate savings account that we would put money into at the end of the month if we had any spare cash left over.

We found the best ways for us to save were to live below our means, if we got pay rises we put the extra to one side from the start and tried not to think of it as our money to spend. Even though we got paid monthly, we would budget weekly by splitting our monthly money into how many weeks were in that month. We set realistic goals of how much we would like to save in a month and would try to find cheaper ways of living such as taking pack up instead of buying food out.

We went down to sharing one car to save on doubling up on insurance and running costs. As well as this both of us signed up for  a credit card  to build up a credit score, but we would only use this to pay for petrol and we ensured it was payed off in full every month.

We used Mortgagecalculator.uk to get a rough estimate of how much our monthly mortgage payments would be depending on what our mortgage amount was. This spured us on to save, as the bigger the deposit, the less interest we would pay.

If you are currently saving to buy a house, keep going, you will get there. Every month that you save, is a month closer to buying. Good Luck

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