Essential Money-Saving Tips To Help You Buy A House For Less

  • Lending
  • 16.07.2021 06:33 pm

It sometimes seems impossible to save enough money to purchase a home. Anyone may save enough for a down payment on the home of their dreams with a good savings plan. Whether you're in the market for your first home or an upgrade, it's important to make sure you're taking all the required precautions to protect your investment and save money. Use these essential money-saving tips to help you buy a house for less.


If you want to purchase a home, you'll need a substantial down payment. The minimum deposit for a house is normally 10% of the property's value, but putting down 15% or more can help you get the best mortgage rates.

Following the Covid-19 pandemic, more lenders are requesting at least 15% down, probably because they are concerned that economic instability may cause property prices to fall. As of May 2020, first-time buyers in London must raise more than £70,000 to purchase a home in the capital. Fortunately, because buying a property in other regions of the country is less expensive, the typical deposit for a house in those areas is much lower. 

If saving for a 10% down payment seems unrealistic, don't worry: a new government-backed mortgage scheme to help people with 5% down payments get on the housing ladder will be available starting April 19, 2021.


It's time to start putting money aside. Start saving for your future down payment with these strategies.

  • Build a better budget

Budgeting is the first stage in the saving process. Make a budget for yourself. To begin, gather all of your bank statements as well as all of your credit card payments. Take a look at your most expensive purchases. Keep track of how much you spend on necessities such as rent, student loans, and utilities. Then think about how much you spend on non-essentials like entertainment, restaurants, and so on each month.

 To determine your interest rate, use a calculator that takes into account the interest rate, loan term, and down payment. Your best chance is to look at homes on the lower end of the market so that you can budget for unexpected costs, such as any renovations you may want – or need – to do. If you don't want to calculate your spending yourself, a budgeting tool can help you automate the process.

Look for places where you may save money after you've categorized your spending. Set a specific (but realistic) budget for each category and stick to it. Make sure you save aside a particular amount of money each month for your down payment. Consider your savings to be a necessary expense.

  • Consider Downsizing

Have you ever observed that the more money you earn, the more money you seem to need? When people have more money to spend, they tend to spend more freely. Downsizing is a quick way to save money for a down payment. Downsizing is the process of cutting costs and living below one's means while saving. When you downsize, you reduce the amount you pay for necessities and instead put the extra money into a savings account.

Moving into a smaller apartment, selling one of your family's extra vehicles, or relocating to a less expensive area are all examples of downsizing. Many people reduce their living space to save money for a major purchase. You might find that a simple life is more appealing to you.

  • Automate Your Savings

If you're prone to impulse purchases, automating your savings can be a good idea. Here's how it works: first, pick how much you want to save for your down payment each month.

Contact your bank to set up an automatic transfer of funds from your primary account to a separate savings account. Every month, your bank will deduct money from your account and deposit it into a separate account.

This can be beneficial to individuals who have difficulty managing their finances. You may be less inclined to acquire goods you don't need if you make your money less accessible. Remember to make your withdrawal on payday or when you know you'll have enough money. Overdraft fees can eat into your savings for a down payment.

  • Cut down on cable or satellite TV

Many people in the United Kingdom pay more than £85 per month for cable or satellite television. Consider how vital it is to have hundreds of channels open to you. Many of your favorite shows are available online a few days after they run, so if you can wait, you might be able to save a lot of money by limiting your options or canceling the subscription entirely. This can potentially add another £1015 to your annual savings.

  • Limit dining out

If you work outside the home, it's tempting to eat lunch every day in your workplace cafeteria or at a restaurant. You may save roughly £507 a year by packing your lunch. Similarly, reducing the amount of time you spend eating out with friends might save you a lot of money.

Your friends will understand if you tell them you're saving for a house. You don't have to stop eating out entirely; just cut back. Put the £21 or £42 you would have spent on a night out into your savings account every time you stay home instead of going out.

  • Ask For Help

There's no shame in asking for help, especially when it comes to saving for a significant purchase like a home. More and more homebuyers are using websites and apps to crowdsource their down payments.

You might want to ask relatives and friends to give money instead of physical gifts on holidays and special occasions. On occasions such as weddings and baby showers, this is becoming more frequent.

Find Ways to Continue to Save Money

Once you've saved enough money to put a down payment on a property, make sure to keep your money-saving habits going. Homeownership typically comes with unexpected bills, so having a savings account to dip into when needed can be beneficial.



Related News