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If you are a seasoned renter, but you fancy putting down roots for the first time, you need to consider buying your first pad. Property hunting for the first time can be fun, but it can also be nerve-wracking. You will be parting with your life savings in an effort to make a financially astute decision. Millions of people do it every year, so it shouldn’t be that challenging, and yet, purchasing a property can be one of the most stressful experiences of your life.

Things can get tricky when you find that you are struggling financially. You might have debts, you might struggle to save and you might be worried about any negative marks on your credit report. Don’t think that you are destined to be a renter forever. There are still ways that you can find yourself on the housing ladder – the journey to get there might be a little bit more difficult, that’s all. Firstly, you need to have the money in your account to put a deposit on a house. This is the key to everything. This will help you to secure a mortgage, prove yourself to be a worthy buyer to estate agents, and to prove to yourself that you can be responsible with money. Here’s how to save for your deposit.

Clear Debt

While you want to save up for your deposit, you also need to shift as much debt as possible. The interest rate on savings accounts is woefully low, so it’ll pay to shift your high interest credit card debt first. To do this, you need to shave as much off your expenditure as possible. The easiest way to do this is by drawing up a personal budget to chart every single incoming and outgoing. This means the croissant you pick up on the way to work on a Friday and the cheeky drinks you have at the weekend. Write it all down. You will quickly discover that you can forego the Monday morning latte and the takeaway at the weekend. By clawing back this expenditure you can put it towards your debt repayments.

If you have many credit cards or store cards, check the interest rate that you are paying. Sometimes, you might be wise heading to a company like Buddy Loans in an effort to consolidate your debt and swap it for one more manageable monthly repayment. This can prevent the danger of forgetting a payment and you don’t have to worry about multiple debt repayments coming out of your account every month. One loan repayment makes it easier to budget and you may even find yourself paying your debt off quicker.


Saving for a deposit on a house may conjure up visions of living like a pauper for a year while you tot up the pennies. Don’t feel like you have to rush to save at the detriment of your current lifestyle. If you still want to head out for dinner once a week, consider what you choose from the menu. Go for the classic burger rather than the lobster thermidor. Think about how you meet up with pals. Could they pop to yours for a dinner party, rather than heading out for expensive drinks in the city? You need to design ways to save money without becoming miserable or stressed.

Saving up for your first pad is a challenge but it is worth it in the end. Keep your end goal in sight. Work out the budget you have to spend for your first home. Consider your salary and multiply this by 3.5. This is the common amount that a mortgage lender will lend if you are debt free. Then try to save at least a ten per cent deposit for your home.

If you are keen on seeking mortgage advice, head to your local bank in the first instance. They will advise on how best to prepare before you apply. Every application will result in a credit score check so you need to make sure that your rating is solidly good. Ensure that you haven’t gone into your overdraft in the three months before you apply. Hold off on buying that new car you want or venturing off on that holiday until you have bought your home. You need to appear like you can live well within your means and that you would be a responsible borrower.


You still need to live so consider your shopping habits. When you head grocery shopping, think about foregoing the premium brands for something that’s a little more modest. The pennies you save on each item will soon add up. Anything that you can save on your shopping list can be placed into your house nest egg. Think about looking for buying in bulk offers. You can purchase more items in one go, provided they aren’t perishable so that you can save money on each unit. Larger packs of laundry powder go further than the smaller packets.

If you have a sporty little number on your driveway. Think about part exchanging it for something a little less extravagant. Head to car showrooms and check out the second hand vehicles that they have. If you only use your car sparingly, you could even forego a motor altogether. When you need to use a set of wheels, you can join a car sharing or local car hire scheme. This means you don’t have to pay for tax, insurance or maintenance, saving you much needed cash. By simply purchasing a slightly older car with a lower insurance group. You can contribute a huge amount of cash to your deposit savings account. The most important thing to you should be ensuring that you have the readies good to go when you are able to purchase a home.

When you are ready to buy your first home, you need your finances to shine. Follow this guide and you can clear your debts and save for a deposit in a measured and responsible way.