Saving for a home is exciting but, given how much you may need for a deposit, it can also be challenging.
Here are some tips to build your savings quickly.
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Look at your spending
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Open a separate savings account
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Set yourself a savings goal
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See if you're eligible for any government first-time buyer schemes
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Do some freelance work
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Save money on rent
1. Look at your spending
Analysing your spending habitscan help you manage your money. You’ll be able to see if you’re overpaying for anything, and ways you could potentially cut back on your spending.
Creating a budgetcan help you set yourself spending limits and determine how much you have spare to save each month. If you’re an HSBC UK customer, you can use tools like the Balance After Bills feature on our mobile banking app. This feature shows you how much you could have left in your account once scheduled Direct Debits and standing orders have been paid.
Explore: Budget planner
2. Open a separate savings account
Opening a savings account specifically for your home deposit can help you keep it separate from your everyday spending account and other savings accounts.
The best type of savings account for you will depend on:
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How much you need to save
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How often you plan on adding money to your savings
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When you need to have the money saved by
See how some of thedifferent types of savings accountswork.
3. Set yourself a savings goal
Finding outhow much could you borrow on a mortgagecan help give you an indication of the type of property you could afford. It may also help you work out how much you would need to save for a home deposit. You could then use this to help you set a goal to work towards.
When saving a deposit for a home, make sure you’re prepared to cover othercosts involved in buying a property, such asconveyancing feesand moving costs.
4. See if you're eligible for any government first-time buyer schemes
You may be eligible for financial support from the government when it comes to buying your own property.
5. Do some freelance work
If you have a skill to share, why not see if you can increase your income by doing a bit of freelance work? You may need to check this is okay with your current employer and look into paying tax, but it can be a useful way to earn some extra cash.
6. Save money on rent
It won't always be possible, but downsizing your property is a quick way to cut the cost of rent and increase how much you can save. You can then put the money you would have spent on rent aside for your deposit. You may also be ableto reduce the cost of your energy billsif you’re able to move into a smaller property.
Save money by flat sharing
Moving into a flat share could reduce how much you’re spending on rent each month, which could help bring down your outgoing costs. For example, you may find contributing to energy bills is cheaper than paying for it all on your own. Finding somewhere close to your workplace could also reduce your travel expenses.
Look at flat share websites or ask friends who may have a room to spare. Make sure to read through your tenancy agreement before agreeing to rent a room – including any stipulations around covering the rent.
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