Almost one quarter* of UK first time buyers saved a home deposit in just 12 months! Last month we surveyed the nation’s homeowners to discover the savvy saving secrets that are helping younger buyers onto the property ladder… and they didn’t disappoint. So, if you’re tired of throwing away money on rental properties, check out these top saving hacks brought to you direct from first time buyers.
Ditch the branding
Switching to supermarket brand products could save you £100s a year! In fact, more than half of those surveyed revealed that ditching household brands was a game-changer when it came to their savings plan. What’s more, 75% of those who made the switch reached their savings goal at least one year earlier than expected.
Get bargain hunting
It pays to shop around and 41% of savers surveyed admitted to using auction sites such as ebay.co.uk to buy new clothes, household items and even electrical goods in order to save cash. In fact, many stores use ebay.co.uk to shift ‘overflow’ stock so you can bag a real bargain if you’re patient.
Clear the clutter
Speaking of auction sites, 54% of respondents were able to make some extra cash buy selling unwanted household goods, upcycled items and clothing on ebay.co.uk or Gumtree. Plus, this also helps to lighten the load on moving day – bonus!
Cancelling unused gym memberships and expensive TV subscriptions were listed by one in three savers as a crucial turning point. Recent figures released by finance app Smart Bill revealed that 18% of people aged between 18 and 35 waste £1,164 a year on subscriptions they don’t use! So take some time to access your regular outgoings and ask yourself if you’re really getting your money’s worth.
Stay at home
Cutting back on social outings doesn’t mean waving bye to your social life. Bring the party to you by inviting friends round for a thrifty night in instead. After all, this worked for 53% of our survey respondents! One of our recent buyers even told us that to help save some money they “cut out little things like buying takeaway coffees” and even “limited our date nights from once a week to once a month.”
Boost your Income
Have a skill you can cash in on? One in ten first time buyers surveyed sought out a second income, such as freelance work, to help save for their home deposit.
A helping hand
The Government’s Help to Buy scheme makes it possible to buy a new home with just a 5% deposit, cutting the time taken to save in half! What’s more, you would also receive a 20% five-year interest-free government loan, which means you only need to secure 75% mortgage and makes your monthly mortgage payments even more affordable. Put some money aside each money and pay of the 20% loan within five years and you’ll never have to pay interest on it.