Including how to save for a house on a low income
Saving for a house as a first time buyer or even as a seasoned home buyer, trying to save to for a house isn’t easy.
In this post, we run through all our very best money saving tips that can help you to save for a house.
If this is your first home then a few things to things about are:
- Is the mortgage that you are applying for the right one for you? Can you afford the monthly repayments? Is it going to be a struggle? Do you have any breathing room if something goes wrong with your job?
- How big is your deposit? Do you have enough to lower the interest rate on the mortgage enough to help you to be able to afford your new home? Have you looked at any government-backed schemes to help you get your foot on the property ladder?
- Check what your chances are of getting a mortgage. What is your credit score like? Do you have a good income stream that you can prove? Do you have a big enough deposit?
- What kind of mortgage is best for you? Are you thinking of a repayment mortgage or an interest-only? An interest-only mortgage is when you only pay off the interest which still leaves you the capital, as in the remaining mortgage amount to pay. A repayment mortgage is when you pay off a little bit of the capital and the interest at the same time.
- Remember to include any fees into your budget. This could be mortgage fees, lawyers and any stamp duty fees.
- It can take ages to buy a house so make sure that you have funds to cover any rental gap or anything else that may come your way.
If you are looking for more ways to save money as a family, have a look at:
101 Frugal Living Tips That Will Save You Thousands – This runs through all our best money saving tips that you can use to save your family money. Nothing is off limits!
How to Stop Spending Money Right Now – This post goes into how you can stop spending money and get on top of your finances.
25 of the Best Ways To Save Money In The UK Right Now – If you are struggling to save money or feel like you don’t know how to budget then read this post.
Free Money Saving Printables
If you are looking to save your family more money or need help to meal plan or want pre-made shopping lists then come join our free Resource Vault. You can download our printables as many times as you like too!
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How to save for a house on a low income
Saving money, regardless of your income isn’t easy. As first-time buyers, you may feel a bit overwhelmed with how much money you are spending. Please don’t let it get out of control.
Start to save money any way you can. We would suggest:
Have a chat with the whole family
Sit everyone down and get the whole family on board. You can’t start saving without the whole family invested and helping out.
Start a budget
Moving home is expensive and keeping track of how much you need to save as well as how much you are spending now is really important. You can use a simple spreadsheet-like our one in our Resource Vault or use an app like Plum that is also free to use.
Plum tracks your money for you while giving you helpful suggestions on how you can save more as a family.
We’ve also used Snoop as well. Snoop is another great app that can help you save your money and shows you clearly were your money is going.
Create financial goals
This is really important when you have a huge financial goal to reach. Start small but celebrate when you reach your financial goals.
Use money saving challenges
If you find it hard to save then use money-saving challenges to help. We use the 1p penny challenge that you can read about here. It starts by you saving £3.65 for the first day then reducing it by a penny every day. By the end of the year, you have over £600. That’s just one way to save!
Go through your bills
This may seem simple but it’s so important when you are trying to save a big amount of money to go through your current bills and start to cut them down.
Make sure you look and compare your energy bills. We use Ooki which is a great tool for comparing all the suppliers on the market.
We have also used Bulb in the past too. They are all about being energy efficient and turning their power into green energy.
Move to a water meter
You may be surprised but having a water meter really can save you money. It tracks how much you use and that’s how much you pay.
Switch bank accounts
Make sure that your money is working for you. This includes your current and saving account. Look around for the best deals and see which one others you the best interest to switch.
Do you need it?
Before you buy, ask yourself if you really need that item. If you do then go for it. If not, then that money could go towards your new home.
Have a clear-out
If you haven’t touched an item in six-months then why not sell it? You can sell it on eBay or even on Facebook market place for free. Every pound is extra towards your home deposit.
We all have loose change in our wallets or coat pockets. Clear it out and add it to your saving sum.
Best way to save for a house deposit
If you are saving for that all-important house deposit then these next tips are for you. These can get you off the starting blocks and really get you saving for that first home.
Check your council tax band
Are you on the right band for your current home? Make sure you research it as it could mean a rebait for you.
If you have credit cards then make sure that you are paying these off first. The interest on credit cards far outweighs the saving amount.
Make sure that you haggle for everything. This includes your car insurance, home insurance or anything that you need to compare the cost for. Don’t be scared. What’s the worst that can happen? You don’t even have to do it over the phone either many companies have a chatbox too.
Use your store points
If you’ve been using your Clubcard points or any other loyalty card points then it may be time to use them as you are saving. Use them to get some money off your weekly shop or even on any days out you have planned.
Do you wear a uniform to work? Then you may be able to claim up to £74 back. Also, check if you are due any extra benefits from childcare help to tax credits.
Make sure that you check that you have the best life insurance plan for you and your family. Check through what you are paying for. If you are going for a new mortgage then this is a great time to start looking around and switching.
How to save for a mortgage while renting
Meal planning and shopping carefully can easily save you money. For us, it was over £50 a week for the four of us. Start by writing down what you plan to eat for the whole week then make a shopping list that.
This should be your only shop of the week.
If you struggle to fill up a 7-day meal plan or come up with budget-friendly family food then have a look at:
The Ultimate £1 Per Head Budget Meal Planning List – This post includes everything you need to plan your weekly food. Pick out of our amazing £1 menu to fill up your meal plan.
Feeding a Family on a Budget: This Weekly Shop is Just £18 – This gives you a meal plan and shopping list that you can use. This isn’t to be used every week but can be used on those weeks that you are struggling with money.
101 Aldi Recipes That Will Give You Dinner Ideas For Tonight – Use this if you plan on shopping at our favorite discounter. This gives you over 100 family-friendly meals that you can cook that will also save you money in the longer term.
Use cashback sites
Using cashback sites can give you extra money back when you buy anything online. It’s really simple to do and you get money back for buying what you were going to buy anyway.
Our favorite cashback site is OhMyDosh. OhMyDosh is a cashback site that you buy through. This means that you sign into OhMyDosh then pick the retailer. You then click on the link and buy like normal. They then register that and pay you the cashback amount within the set terms.
Save energy at home
Doing simple things like turning your lights off and turning your heating down 2 degrees can really help you save money.
Best account to save for a house
When you start to save, you’ll need somewhere to put your money. Here, we have rounded up our favorite savings accounts that can help you to earn interest as you save.
Try to keep your mortgage deposit in another account so you don’t get tempted to touch it.
Having a regular savings account means that any money you add to the account will earn you interest. While a normal current account gives you options of a debit card and other features, a savings account is there only to help you earn interest on what you have saved.
Lifetime ISA (LISA)
If you are aged between 18 and 39 then a LISA is for you. The government tops it up by 25%. This is for first-time buyers only.
Help to Save scheme
This is government-backed savings account that is for low-income workers. You can save anything between £1 and £50 a month and you don’t have to save anything every month either. You can pick an account that lasts either two years or four years and you get a 50% bonus at the end. What we like the most is that you can withdraw the money at any time so it isn’t tied up.
Setting up an ISA means that you won’t get charged for your savings. Choosing the right ISA just means making sure that you’ll be getting the highest interest rate you can and if you can afford to leave your money in there without touching it.
Make sure that wherever you choose to put your money that the bank are regulated by the Financial Conduct Authority.
Make extra money to boost your savings
Making money online is a great way to boost your savings pot. It means that you can put extra money in and hopefully save for your new home quicker.
Our favorite ways to earn money online are:
Matched betting is a completely legal, tried and tested way to make money online while you’re at home. It basically turns the tables on the bookmakers, to give you their free bet offers, so you can’t lose.
We use a company called Profit Accumulator that helps to make sure that you are betting correctly. They work out all the maths for you.
Blogging is a great way to earn money while still working on your day job. You don’t have to be an amazing writer or great at technology to start. It’s a really cheap way to earn money and makes a great hobby too.
- Penny Saving Challenge: Save Over £600 in a Year
- This is What You Do When You Really Have No Money To Feed your Family
- 25 of the Best Ways To Save Money In The UK Right Now
Money from your phone
If you are short of time then some of these online ways to earn money may be for you. They are slow burners and don’t earn you loads but are quick to do when you are short of time.
If you are looking to earn money from home then have a look at Trading 212 which talks you through how to deposit your first £1 and get a free share worth up to £100.
Watch videos or complete offers through InstaGC* and redeem for gift cards. As soon as you reach a pound you can start redeeming. It’s really easy to use while on the move too.
With Valued Opinions* you can earn up to £5 a survey. Everything is surveyed from what you think it’s fashionable to what you eat for dinner.
If you enjoyed this post and would like some more money saving ideas, then head over to the saving my family money section here on Savings 4 Savvy Mums where you’ll find over 50 money saving tips to help you save your family more. There’s enough tips to help you save over £300 a month! You could also pop over and follow my family saving Pinterest boards for lots more ideas on how to stop spending and save more; Money Saving Tips for Families and Managing Money for Families.
Love this post? Then why not save it to Pinterest so you can easily find it later.
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