There are several steps you may take to enhance your savings if you want to increase your mortgage deposit. We’ve included our best recommendations below.
The following saving methods are a practical approach to saving money if you want to try something different, rather than putting away a predetermined amount monthly.
The fifty-two week challenge
If you are unable to save a big portion of your monthly paycheck, this is an excellent approach to get you started saving for a deposit.
You save £1 for the starting week (typically in a high-yield savings account). You save £2 in the second week. The following week, you save £3, and so forth. You should have saved a whopping £1,378 by week 52. In addition to this – you will also have accrued some interest if you saved the money in a high-interest account.
Months with no spending
With no-spend months, you select a specified length of time (such as a month) and refrain from purchasing anything that isn’t absolutely necessary (anything not in your budget) during that time.
This entails zero expenditure on eating out, clothing, pub trips, or anything else you like that isn’t required to survive. When you finish your challenge, you deposit the money you would have spent on unnecessary expenses into your (hopefully high-interest) savings account.
The fiver challenge
Does the idea of saving £6,890 in a year sound good to you? The fiver challenge is similar to other saving strategies such as the fifty-two week challenge, except that instead of increasing in multiples of one pound, you increase in multiples of £5. By the last week, your total will be £6,890 – with your final deposit into the account being £260.
We understand that in the last few weeks it may be challenging to save close to £260 each month, but put aside what you can and take pride in knowing that you are taking active steps to improve your deposit!
Saving challenges
These strategies should be put into place if you want to build up savings without it seeming like a chore – if you are the type of person that just likes to put aside a set amount each month, that’s fine too! To save up for a mortgage deposit, it’s all about using methods that work for you.
If you’re ready to speak to a mortgage adviser, then get in touch with one of our friendly team today!