Saving hacks to help grow your mortgage deposit

A recent index from Skipton Building Society and Oxford Economics has revealed that only half of the UK's top earners can afford to buy their first home in their local area, so it's no wonder home ownership still feels unattainable for many.

Although your gut reaction may be to stop spending and start praying for a lottery win, most of us would agree that's not likely to be realistic. It's also not always possible to stop spending completely, particularly when other commitments and unexpected problems like your car breaking down or your boiler going up the shoot intervene and put a dent in your savings.

So, how do we find new ways to top up the house deposit fund and make our dreams of home ownership a reality Depending on your circumstance, there are a number of other options that could help you increase your deposit fund.

• Stop renting –  according to consultancy Dataloft, almost half of adults under the age of 30 spend more than 30% of their income on renting privately. If you're currently renting, have you considered breaking the cycle? Some of the biggest savings you can make are on rent and utility bill payments and whilst it might not be the most attractive option, returning to your family home or finding cheaper accommodation is likely the most significant change you can make. 

• Tap into the Bank of Family – whether it's Mum, Dad, Granny or Grandad, the Bank of Family supported first-time buyers to the tune of more than £9 billion in 2023 according to Savills Property Agency. Whilst most will gift a deposit through savings or releasing equity in their own property, family members can also consider joint borrowing (such as with a Joint Borrower Sole Proprietor mortgage) - read more here.

• Take advantage of government schemes – Shared Ownership and First Homes are two government schemes which give purchasers the chance to buy a property at a discounted rate, meaning you might not need to save as much as you would otherwise.

• Shop around for the right account - If mortgage schemes aren't quite right for you, you could also consider a Lifetime ISA (sometimes known as a LISA), which will give you a 25% boost on your savings to purchase a property worth £450,000 or under. We also offer a dedicated Home Saver account to get that nest egg started.

• Be a smart saver – whether it’s booking a holiday or ordering shopping to your door, smartphones are designed to make our lives easier. So why not use it to help save money? With many money apps now offering 'round ups' as well as other nifty savings tools and myriad apps offering budgeting hacks, it's never been easier to get organised and put your pennies away.

Talk to us about first-time buyer mortgages 

Newbury Building Society is an experienced mortgage lender, and our qualified team is on-hand to answer any questions you may have. Make an appointment here.

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.