So, you’re thinking about taking your first steps on the property ladder?
Congratulations!
Buying a house is a huge achievement, but there’s no denying that it’s an expensive one.
From surveys to solicitors’ fees (to name a few), there are many different costs involved in purchasing a property.
Perhaps the biggest cost, however, is your deposit.
But how much do you need for a house deposit? And, more importantly, how do you save for your first house deposit?
Our estate agents at Stapleton Derby share their expert tips for first-time buyers in this article.
How much deposit do I need to buy a house?
This is a question we get asked a lot, especially from first-time buyers.
The answer, though, depends on the price of the property itself, as well as the percentage outlined in your mortgage agreement.
In most cases, you’ll need a deposit of at least 5% of the property’s purchase price, so, for example, if you’re buying a £200,000 property, you’ll need to put at least £10,000 down as a deposit.
So, how do I save for a house deposit?
Let’s face it.
Not many of us, especially first-time buyers, have £10,000+ sitting in our bank accounts.
Which begs the question – where do you start when saving up for a house deposit?
The first step is to create a savings plan.
Consider your monthly earnings, and decide on an amount, making sure it’s well within your means, to set aside each month.
For example, if you want to save £10,000, you can do so by saving:
- £278 per month for three years
- £167 per month for five years, or
- £119 per month for seven years.
Be realistic with how much you can afford to set aside each month, and keep in mind that putting smaller amounts of money away for longer, in most cases, is much more manageable.
Once you’ve outlined an achievable savings plan, you can begin looking at savings accounts.
If you don’t plan on using the money you save for a few years, it’s best to look into long-term savings accounts with high interest rates. Otherwise, you can set up an instant access savings account, so you can access your savings quickly when they’re required.
However, it’s important to note that these accounts offer much lower interest rates.
You could also look into opening a Lifetime ISA (LISA) if you’re a first-time buyer under the age of 40. For every £1,000 you put in, the government will top your account up with £250, which could help you save up for your deposit much faster!
On the hunt for houses in St Helens?
The process of saving for a house can be stressful, but with our help, you don’t have to worry.
With decades of experience in selling and letting property, we’re the best-placed team to offer advice, and we’d be more than happy to answer your questions.
Whether you’re looking for houses for sale in St Helens and the surrounding areas, or need more guidance on saving for your first house deposit, get in touch with our team today by calling 01744 883 322 or sending us an email, and we’ll respond to your enquiry as soon as possible.
Alternatively, you can browse our properties for sale in St Helens and beyond online!
