Getting a foot on the property ladder is something to which most people aspire. Rightly or wrongly, there’s nothing quite like owning your own property to feel like you have “made it” in life – and although some people go through their entire lives renting and get along just fine, most agree that in the long term, owning makes more financial sense and is the most cost-effective choice.
That’s fine, and it’s most likely nothing you don’t already know. But while the potential mortgage payments might look manageable enough, that still leaves the thorny issue of putting a deposit together. You know the magic equation – the more you can put down, the better the mortgage deal is likely to be. Once you’re on the property ladder, it’s relatively easy, but where do you start? The average first time deposit varies massively across the country, from below £20,000 in the north west to over £170,000 in parts of London.
Putting a little aside to finally become a homeowner might sound like a challenge too far, but it’s not necessarily as tough as you think.
Sort out your debt
If your monthly balance is actually in negative territory, the idea of saving anything at all might sound like a joke. The trick is to attack it logically, step by step – and to remember you are not on your own. Debt is a part of life in the 21st century, and managing it just needs knowledge and expertise. If the monthly payments are becoming impossible or you feel like things are spiralling out of control, it’s worth talking to a company like Credit Fix. They do this stuff for a living and they have seen it all.
Assess your current living arrangements
If you’re renting at present, you might need to break the chain to make the change. Is moving back in with Mum and Dad an option? You might recoil at the idea, but think how much you could save in just a few months. And if there is a definite timeframe on it, both you and they might just enjoy spending some time together as adults – it’s the sort of period many look back on with a smile in later life.
Cut out the coffees and snacks
Can’t function without a cup of coffee in the morning? Sure, many will understand that feeling. But if you are throwing away £3.00 on having it made and poured by an “Italian style barista” that’s £750 over the course of a year. The sandwich deal at lunchtime? That’s costing perhaps twice as much again. Make your own lunch and coffee – it doesn’t take a minute, and it will save you over £1,000 per year.
Declutter and free your soul!
OK, perhaps that is a little evangelical, but there is definitely a great feeling that comes from clearing all that junk out of your life. And it also generates some very handy extra money. Take an objective look at what you have accumulated and make a decision whether to keep, sell or give to charity. If you have decided to move back in with family for a while, it is the perfect time to do it. Be brave, be determined, and you’ll soon see that deposit building up!