One of the greatest issues faced by anyone who wants to buy property in London is managing to save sufficient money to put down as a deposit. Getting a good mortgage deal relies on raising around 20% of the property’s value and this can prove to be a challenge. The good news, however, is that with a realistic savings plan and a disciplined approach, it’s perfectly possible to save enough to purchase a home.
Opening a savings account
When it comes to saving a deposit, one of the biggest problems faced by prospective homeowners is knowing where to start. The key lies in developing a coherent strategy, by looking at where savings can be made in everyday expenses and by determining how much can be set aside every month.
Harry Singh, estate agent at Henry Wiltshire Hayes, advises anyone looking to get their foot on the first rung of the property ladder to take the time to choose the right savings account to suit their needs.
“The idea of saving enough money to be able to buy property in London can be very daunting.” He says, “However a vital step to success when entering the London property market is to choose a savings account with a good rate of interest, and that means shopping around to find the best deal. It may be more appropriate to choose an account which doesn’t allow instant access as these tend to have a higher interest rate and offer better returns. Comparison websites are an excellent resource which can be used to find the best value for potential buyers.”
Defining areas to economise
Once the right savings account is in place, the next step is to define all of the areas in which savings can be made in the monthly budget. Carrying out a thorough review of each month’s expenditure will highlight where costs can be cut back and which expenses are non-essential.
While it is important not to overestimate the amount which can be saved on a monthly basis, potential buyers must recognise the fact that significant savings need to be made, and that something more drastic than simply forgoing the daily coffee on the way to work will probably be necessary. Luckily, with price comparison websites, it’s easy to find the cheapest energy and insurance providers, and by switching to budget supermarkets, making savings on the weekly food bill can be easier than expected.
Setting up a direct debit or standing order directly into the savings account is another effective way of ensuring that those funds don’t accidentally find themselves being used for an entirely different purpose. While it won’t happen overnight, eventually the pennies will turn into pounds and the savings will slowly mount up into that all-important deposit.
Buy property in Hayes
If you’re ready to buy property in UB3, Harry and the Henry Wiltshire team can help you to enter the London housing market. Contact us today on 020 3696 5626 and let us help you to find the perfect home.