With Christmas fast approaching, are you ready to splash the cash? Check out our tips for sustainable spending.
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 4 in 10 30-year olds live in rented accommodation, compared to 1 in 10 50 years ago? If you're currently stuck in the renting cycle, it might be time to consider breaking it - some of the biggest savings you can make are usually on rent and utility bill payments. Returning home, or finding cheaper accommodation may seem like a hassle, but it is probably the biggest change you can make.
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 gift a deposit. This is a sum of money that is given as all, or part, of a deposit to buy a property. Other ways for family members to support first-time buyers include joint borrowing (such as with a JBSP mortgage), or releasing equity in their own property.
3. 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 your savings rate can be smaller than it would otherwise be.
4. Be a smart 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 most banking apps now offering a 'round up' service, as well as other nifty savings tools, it has never been easier to put your pennies away.
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.