Advice on saving for a house deposit with savings accounts
In today’s market, if you’re thinking of buying a house, opening and paying into a savings account can be a great way of building up your deposit. Getting that first step on the property ladder isn’t easy, and that’s before you’ve factored in all the additional costs associated with buying a house.
Check out our handy guide to saving for your deposit by uncovering some of the hidden extras you might not have thought to include in your savings plan.
Fees – There are lots of one-off costs you’ll have to pay when buying a house, outside the cost of the actual deposit. Things like surveyors’ fees, legal fees, utility set-up costs (re-connecting your phone line, for example) and stamp duty, just to name a few. You can find out more online about how much these are likely to be, but it does add up. If you do your research – and pay a little extra into a good savings account to cover these costs – this could help give you a better chance to plan for these costs when the time comes.
Bills - Gas, electric, water, council tax, TV Licence… Unless you’re moving into your own house straight from living with your parents, the chances are you’ll have come across the burden of bills already. But it’s important to remember that these monthly or quarterly outgoings won’t be the same for every property. So be sure to calculate what the bills are likely to be for your new place to avoid any surprises – particularly if you’re upgrading to somewhere bigger. ISAs can be a great way of putting aside money to cover your bills. Why not look up the best ISA rates and get saving now?
Furniture – So, you’ve done it. You’ve made that savings target for your deposit you thought you’d never reach. But once you’ve found the perfect home, you’ll want to make it yours on the inside too. And after painting and decorating comes furniture. You might already own furniture from places you’ve been renting, or perhaps you’ve got friends or family willing to donate some second hand. But if not, chairs, sofas, beds, tables and storage aren’t cheap. Buying it all new could add up to thousands. Be sure to factor this into the amount you’re trying to save – and get a great savings account or a Cash ISA to make your money go further.
With good preparation and planning – and the right savings account – buying a house doesn’t have to be a stressful experience. Compare savings accounts online to find the right option for you.