How To Budget Your Costs When Saving For A Mortgage

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Buying a home is one of the biggest commitments you are ever likely to make, and for many people owning a property is something that takes years to achieve. This is because of the large deposits that are needed to secure a mortgage, and the task is made nearly impossible for some thanks to other outgoings like food and rent. It’s not easy, but fortunately there are little tricks and tips for cutting your costs and putting your hard earned money towards a mortgage instead.

List your outgoings

It’s vital to write down all of your monthly outgoings onto a sheet of paper, before drawing a line through things that you could really do without. This includes everything, from gym memberships to magazine subscriptions. Even a spare £50 a month can make a difference if you’re saving for a mortgage. If you’re saving for a home with someone else, then both of you need to scrutinise your spending.

Switch your providers

It’s never been easier to switch your providers, whether it’s broadband, insurance or anything else. There are even comparison websites out there which do all the hard work for you, telling you whether you can find a cheaper deal elsewhere. Some providers even offer you cashback or other incentives for making the switch.

Be clever with your savings

Are you making the most of your savings? You could be missing out if you’re not getting the best interest rate from your savings account. You also need to choose the best account for your requirements. A regular savings account might be best if you just want to set aside a regular amount of money every month, whereas an instant access savings account provides greater flexibility. Shop around for the best savings account for your needs.

Clear out the wardrobe and draws

If it’s been a while since you had a clear out then you could easily make yourself some money by selling things online. Getting rid of things you don’t need or use anymore can provide a nice little boost to your savings that you weren’t expecting.

Transport costs

Are there ways you can save money on your transportation? If you get a train to work, is it possible to switch to the bus instead? Or even cycle in? You can also research how much cheaper it would be to get a ticket to an earlier destination so that you can walk the rest of the way.

Stop renting

Of course, if you’re renting then this will take up most of your funds. This is how people get trapped into the cycle of spending so much on rent that they can’t put the money towards a deposit and this can spiral into big amounts of debt (if you are an individual in a situation like this you might want to consider a Trust Deed). It’s tough, but if possible it might be a good option to move back in with family for a while, or even live with friends. Just a year’s worth of saving on rent money could provide thousands of pounds for your mortgage. If this isn’t possible then even switching to a houseshare could cut your rent in half.

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