As of Monday 15 June 2020.
Research from the Building Societies Association (BSA) revealed that 40% of consumers are concerned about the rising cost of living, with over a quarter worried about the difficulty of saving for the future. 68% also cited that being able to afford a deposit is the biggest barrier to purchasing a property.
No wonder home ownership can feel increasingly unattainable for many people.
Although the immediate response is to stop spending and win the lottery, it’s not always possible as other commitments and ‘real-life’ problems – that unexpected car breakdown or boiler fault – can cause a dent to our bank balance.
Instead, we have to find new ways to save the chunk of cash needed to put down as a deposit. So the question is: how do we do this?
Depending on your circumstance, there are a number of other options that could be suitable to your situation and help bump up your savings.
1. Stop renting – Did you know that four in ten 30-year olds live in rented accommodation, compared to one in ten, 50 years ago? If you are currently stuck in the renting cycle, it might be time to consider breaking it as some of the biggest savings you can make are usually on rent payments. Returning home, or finding cheaper accommodation may seem like a hassle, but it does work!
2. Tap into (or be) the bank of Mum and Dad – The bank of Mum and Dad (and now Nan and Grandad) is already helping many people buy their first home. Often by using their own savings, parents and grandparents can now gift a deposit. This is a sum of money that is given as all, or part, of a deposit to buy a property. Not only this, family members can become a joint borrower on a mortgage but the contract and responsibility is with to the homeowner.
3. Take advantage of government schemes – Help to Buy and Shared Ownership are two government schemes which give purchasers the chance to buy a share of a property – usually between 25% - 75% of its value - and then pay rent on the remaining share. In both these schemes, the deposit required can be a lot lower. This means your savings goal will be less.
4. Be a smartphone saver – Whether it’s for tapping out a text, taking a photo or scrolling through social media, smartphones are a popular and convenient device designed to make life easier. So why not use it as a tool to help save money? With popular apps such as Yolt, OnTrees and Wally, it has never been easier to find ways to add to your savings from the palm of your hand.
Newbury Building Society is an experienced mortgage lender, and our qualified team is on-hand to answer any questions you may have. Contact us today to make an appointment.
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.