If you want to get a decent mortgage with low-interest rates, you often need a worryingly big deposit. The average first-time buyer will need to have a 20% deposit for their first home, which could lead to you needing £20,000 or more.

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However, there are some ways you can get your costs down, and save for the deposit you need. Let’s have a look at some of them below: 

Mum And Dad

Although you may not want to ask for help. The bank of mum and dad in the form of an informal loan, cash gifts, or a more formal arrangement with the mortgage lender (guarantor or providing part fo the deposit) could be a great way to get you on the property ladder. 

Buy With Family Or Freinds 

If you have family or friends who are looking to make an investment, you may want to think about buying your home jointly, however, you do need to consider how it will work if you want ot sell your part later down the line. 

Shared Ownership: 

If you currently rent a housing association or council house and have an income less than £80,000 then you may be able to apply to buy part of your home through shared ownership. This can help to reduce the size of the deposit you need to find, but you will still need to pay some rent. 

Help To Buy And Other Shared Equity Schemes:

These will enable you to buy a new-build home. You will usually need to have a deposit of around 5% and then the developer or government will lend you the rest of the deposit needed. The Help to Buy loan is free for the first five years, but you need to be able to plan the yearly payment from the sixth year onwards. 

Saving For Your Deposit 

Once you are aware of the amount you need for your deposit, you can start planning to reach the goal. Being able to save regularly is far more effective than irregular sums of money coming in. Using tools like the MortgageCalculator.Org will enable you to figure out your exact goal. The time it takes you to save is going to depend on your goal amount and the amount you can afford to put to one side every month. You need to be realistic with your goal. 

One of the best ways to save is to be realistic and then set up a direct debit or standing order for the amount to be transferred on payday each month. If you are able to start saving more, it will obviously help you to get to your target quicker. Some people like to look at their needed deposit, and then divide by the time goal. For example, if you have £10,000 you need to save and you want to buy in three years, you will need ot save £278 a month from your budget to hit your goal. 

This short guide should help you get on track to saving for your deposit. Have you started to save? What have you been looking at to help you reach your target?