Saving for a house deposit can feel like a long, arduous task that involves a lot of sacrifice and a change in lifestyle if you want to have the money in your bank quickly. However, there are other ways of building up your funds and we've got a few great solutions up our sleeves to share with you today:
Stop renting
Renting a home isn't a cost effective way of living so, if you can, it might be a good idea to move back home for a few months and put the money you would have spent on rent into a savings account or ISA. You might still have to pay some board while at home, but it will be significantly less than what your landlord was asking for.
Get a Help to Buy ISA
This Government created savings account is great for first time buyers. It works by encouraging you to save £200 a month and, once you reach £1,600, the Government starts granting you a nice little bonus on top! If you already have a bit of cash saved then pop £1,200 into your ISA immediately, £200 for two months afterwards and within three months you'll have earned £400 extra from the Government (to be paid once you secure a mortgage and complete all the paperwork for your new house).
Take out a loan
Logbook loan lenders, such as Car Cash Point, can offer you a great deal when it comes to loans that you can then use for your deposit. Logbook loans give you money against the value price of your car, motorbike or even boat, with ownership being temporarily granted to Car Cash Point until the loan is paid off.
You can, of course, continue driving your vehicle throughout the duration of the loan, so it's a great way of making some quick cash and securing that deposit. Plus, we do not require credit checks and therefore won't leave a foot print that will affect your credit history. Check out how our loans work.
Ask the 'Bank of Mum and Dad'
Parents usually have some money squirrelled away ready for the day their children decide to either purchase a home, get married or have a child. So now that you are saving for a deposit it would be the opportune time to politely ask if they can help you out. It could be a generous donation towards your deposit or an informal loan, but anything they have spare will help towards your goal amount.
Get a better interest on your savings account
If you're going down the traditional 'setting money aside' route, then it's a good idea to look into what interest your savings account offers. A site such as moneysupermarket.com can help when it comes to comparing deals on accounts and getting the best rate for your money.
Sell stuff for extra cash
Those old mobile phones in your drawer, the clothes hanging in your wardrobe that haven't be worn in a year and the boxes of shoes that never made it out of the house can all be sold to excited buyers on sites such as eBay or Depop for decent amounts of money!
When it comes to obtaining a house deposit there are so many ways of growing the amount of money you have in the bank. Try some of these options and you'll be climbing that first rung of the property ladder in no time.
Also take a look at our article on most common money mistakes we all make.
