Top tips on saving for your new home

Top tips on saving for your new home

Set a clear goal
Research properties and prices in the area you’d like to live. Consider the type of home you’d like and calculate the deposit you’ll need – this is typically between five and ten per cent of the property’s value. Consider additional costs such as solicitors’ fees, surveys and Stamp Duty Land Tax if applicable.

Understand your finances
Assess your income and outgoings to set realistic goals for how much you can afford to save each month. Budgeting apps can help you to track spending and identify saving opportunities. Every little bit saved adds up over time.  

Open a savings account
Consider opening a Lifetime ISA if you’re eligible. The government will add a 25 per cent bonus to your savings – up to £1,000 annually – to help you towards your first home. This is a great short-term method for boosting your savings.

Automate your savings
You can set up a standing order to transfer a fixed, pre-determined amount into your savings account each month. This makes saving part of your routine as you never see that money, reducing the temptation or capacity to spend early into the month.  

Seek expert advice
Speaking to a mortgage provider or a housing association like Bromford can help you to understand your options, including providing information on Shared Ownership which makes homebuying more affordable and accessible.