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How to save a mortgage deposit

These days, it seems like it's more difficult than ever to get on the property ladder. The major stumbling point for most first time buyers is their inability to save a mortgage deposit. With this in mind, we've rounded up some expert advice to help you save for your mortgage deposit.

Think long term

If you're on your own, it's likely to take you a couple of years to save a decent mortgage deposit. If you are buying with someone else, you'll probably need around one year. Be patient - although you are moving slowly, you are moving in the right direction.

Have a target in mind

A precise target will give you something to aim for and help you keep track of your progress. A good way to choose a target is to first decide on the approximate value of the house that you want to buy, then calculate 10% of this value. You'll also want to save another £2,000 to £3,000 on top of this for fees and surveys (more if the value of the house you want to buy makes it eligible for stamp duty). So, for example, if you are looking at a house for around the £120,000 mark, aim to save a deposit of £15,000.

Plan monthly

Break down your target into achievable monthly goals. So, for example, if you want to save £15,000 in two years, you'll need to put away £625 per month. Set up a separate savings account and a standing order after payday to help you do this.

Stay on track

Of course, staying on top of your mortgage deposit savings can be difficult, and you may not be able to put away that much every month. But instead of giving up on your plan, re-adjust your budget for future months to help you make up the deficit. Keep in mind your future goals to help you stay motivated.

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