01789201914 enquiries@capc.uk.com

How to save money to buy a house

While it may feel impossible to save up enough for a deposit, there are various things you can do to ensure you get on the property ladder sooner than you think.

Set a target

Setting a target gives you something to aim at, it is a good way to focus your efforts and lets you know when you are ready to move onto the next stage of the mortgage process.

1. Work out roughly what your house/ flat is going to cost, based on size and location. Rightmove is a good place to start, unless you need to decide where to live first.

2. Decide what size deposit you would like to put down, most first-time buyers aim for 5% – 10%. A Mortgage Calculator may help with this step.

3. Research what other costs are involved in the mortgage process, solicitor fees, stamp duty, mortgage broker…etc.

4. Add it all together and you have your target.

5. If your target is unachievable, go back to steps 1 & 2 and ask yourself if you can compromise with the size or location or if you really need a 10% deposit.

 Create a budget

Once you have a target set, it’s time to look at your personal finances to set a budget.

1. Get a piece of paper and split it into three columns.

2. Fill the first column with your monthly income.

3. Fill the second column with what goes out each month, only include consistent expenses, such as gym membership, car finance, school fees, Netflix…etc. You will also need to enter a rough figure for costs that are essential but vary month to month like food shopping, petrol and child costs.

3. The third column is for everything else, this includes expenses that are not essential such as eating out, clothes, holidays and entertainment.

You should now have a good idea of your income Vs your outgoings.

If your outgoings are lower than your income you can work out how much you should be saving each month.

If your outgoings are higher than your income you’ll need to make cutbacks… 

Contact our expert advisers now

Call free from landline or mobile

01789 201 914

Make cutbacks

Making cutbacks doesn’t have to be painful. It’s a matter of thinking about the long-term gains over the short-term.

Remember that piece of paper with three columns on you created at the last stage. I want you to look closely at the third column, analyse the column and ask yourself, what in this list can I live without, or cut back on. Then simply commit to cutting it out.

Once you have dealt with the third column, move onto the second one, this will require more effort to cut back on, but will supply great rewards if you can.

Do you need a £60 phone bill each month? Next time you come to renew your contract consider moving onto a sim only contract with your existing phone for around £20 a month. In a year that could save you £480.

When was the last time you actually went to the gym? Would it be better to buy a gym mat and do youtube workouts at home?

Could you survive on Freeview? With catch up services available it’s a good option these days.

Everyone is different and there will be things that you can’t live without and will not compromise on, but you’ll be amazed what you can save if you put your mind to it.

Look after the pennies and you’ll save a deposit quicker than you think!



Take advantage of government schemes

Now you have a target to aim for, a budget plan to achieve your target and have made the necessary cutbacks required, you can start looking for extra help.

The government has introduced a number of different Help to Buy schemes you may be able to take advantage of, all aimed at those struggling to get to where they want to be on the property ladder.

Everything you need to know about help-to-buy schemes.


The bank of Mum and Dad

Borrowing money from your Mum and Dad can be a quick way to help buy your own home years earlier than you would without their help. If your parents are willing to help you financially, just be aware that there’s a set procedure to follow, as this money has to be officially gifted.


For further information call: 01789 201 914

Or email: enquiries@capc.uk.com


Submit a Comment

Your email address will not be published. Required fields are marked *

Contact our expert advisers now

Call free from landline or mobile


Not the right time for a call? Email us and we can arrange a good time to discuss your needs


Mortgage Blogs

The Art Of Decluttering

We all know that feeling when your house becomes so full that you feel like you can’t see the wood for the trees. If this sounds familiar to you, then it’s time to sit up and finally de-clutter your house, once and for all! Over the years, your belongings build up....

Remortgaging To Raise Capital

There may come a time when you want to use the money that is tied up in your home for something else, such as for home improvements. Going through this process is known as releasing equity.

The ins and outs of overpayments

Once you’ve settled into your mortgage and have gotten used to your new outgoings, you may find that you have a bit more disposable cash than you first thought. So the next question is: what should you do with the money?

Remortgaging FAQs

Whether you should remortgage or not will depend on your individual circumstances and needs. If you have found a lower interest rate and it’s financially the better option then it might be more suitable for you to remortgage. You also might want to remortgage for the following reasons:

10 documents every landlord should have to hand

As a landlord, no matter whether you have one property or a large portfolio, it’s important to keep on top of all the paperwork associated with owning the buy to lets. Here are ten key pieces of documentation you should have up to date and to hand:

Advantages of buying a new build

Just like everyone has their own style when it comes to fashion, it’s the same when it comes to houses. Some people prefer period houses that have character and unique features, whereas others might prefer a new build property with a clean, modern look and feel that you can make your own.

Help to Buy for Homemovers

Many of you may already be aware of the Help to Buy scheme that was introduced back in 2013 that aims to help those struggling to save money get onto the property ladder, or to move home. However, it’s a myth that all Help to Buy schemes are for first-time buyers only.

How does remortgaging work?

You may well have heard of remortgaging but never fully understood what it means. In layman’s terms, remortgaging is when you look to move from one mortgage deal to another, either sticking with the same lender or moving to a new one. A mortgage is likely to be your largest financial commitment…

What does a mortgage broker do?

Does giving up a day of your time to sit in an office or bank, answering questions and filling out paperwork sound like your idea of fun? No. Ours neither. Most people assume that getting a mortgage means heading straight to your bank. But unfortunately, this can mean missing out on the right deal for your needs.

5 reasons why you might want to remortgage your home

Very rarely do you take out a mortgage and stick with the same one for the whole term i.e. 30 years until it is paid off and you’re mortgage-free (oh, the dream!). Each household is different and there are various reasons why you might look to remortgage. Perhaps you want to borrow more…

Are you investing or simply keeping your fingers crossed

For many years, it didn’t make a huge amount of difference whether people had an investment plan in place before they bought a property. Until 2004 for some and for others up to the credit crunch, average prices had enjoyed a rapid journey upwards, giving virtually everyone…

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances and loan amount. The fee is up to 1.5%, but a typical fee is 0.67% of the amount borrowed.

©2019 |CAPC is a trading name of Christopher Allen Private Clients Limited which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the financial conduct authority.

Christopher Allen Private Clients Limited. Registered Office: 7 Arrow Court, Adams Way, Alcester, Warwickshire, B49 6PU. Registered in England Number:08820469

We use cookies on this website to give you the best experience we can. To find out how to turn off cookies, have a look at our privacy & cookies policy