Getting a foot on the property ladder is a dream many of us hope to achieve one day, but exactly how to get there can feel like a bit of a mystery.
There are very few honest stories out there about how first-time buyers actually managed to save enough to for their deposit, including the sacrifices, the lifestyle changes and, in some privileged cases, the help from family and friends.
To break down how it really happens, especially in these trying times, we asked three first-time buyers for their deposit saving stories, while offering tips on how you could meet your goal, too.
1. ‘I’m cutting back where I can’
Maria, 26, is a budding journalist and TV runner living in the Cosmopolitan Home Made house in Manchester. Here, she pays just £1 a month in rent, allowing her to save towards a deposit while starting a career in the media industry.
“Saving for a deposit got off to a rocky start for me. My parents always stressed the importance of saving, but I wanted to travel, so I spent my money on that instead when I was younger. Part of me does wish I’d started saving towards a deposit earlier, but I’m grateful for the experiences I’ve had.
“I’ve been focusing on reducing my outgoings and saving wherever I can. Usually I love eating out, but I’ve been cooking at home more. I’ve also been picking up extra shifts with my friend’s street food business, something I can do flexibly around work experience.
“It’s hard to save in a big city, but the sacrifices and extra hours are worth it when I visualise the moment I’ll walk into my own house, decorated in my own style, without the worry of losing my security deposit if I slightly scuff a wall. The dream.” Maria, 26, Manchester
Our top tip:
On average, you’re likely to save twice as much if you’re working towards a goal. If you bank with NatWest, their Savings Goal Tool* can help you track your progress.
2. ‘I’ve found my hustle’
Katie, 29, is a fashion copywriter, currently saving for the deposit on a 'fixer-upper' in the seaside town of Margate.
“My dream is to eventually own a retro 70s-inspired home with disco balls in the bathroom, but I’ve only been saving for a year so far.
“I’ve been determined to save as much as I can. Each month I put £200 into an ISA, then top up my savings in a separate account using my remaining earnings after I’ve paid for food, rent and tax (I’m self-employed). This usually amounts to an extra £100 or £200, but it really depends on how much work my fashion copywriting business has had that month.
“I’ve been really lucky in that COVID has seen a rise in people wanting to refresh their website content and business has flourished. All the profits I’ve made over the past few months have gone straight into my house fund.” Katie, 29, Margate
Our top tip:
If you're aged between 18 and 39, boost your savings by opening a Lifetime ISA. You can add up to £4000 a year to put towards the deposit on your first home. The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.
3. ‘I’ve never been so organised’
Isabella, 28, is a journalist living in London. She has been saving for a deposit for the past three years, and hopes to find a flat in the next few months.
“The very first thing I did when I decided I wanted to buy a place of my own was make a spreadsheet to keep track of all my bank accounts and how close I was to reaching my goal amount.
“I opened a Help To Buy ISA (when this was still available) and put the full amount possible into it each month (£1,200 in the first month, £200 a month after that) to ensure I’ll get the maximum return from the Government when I use it. I also stopped letting my money go stale in an account that didn’t accrue interest, so I researched the highest-interest bank accounts and started moving my money around. Whenever the interest drops, I move on to the next one.
“Not having to commute in to my central London office has also helped me put away an extra £130 a month, as well as saving more by not drinking and going out as much during lockdown.
“For the first three years after university, I was lucky enough to live rent-free with my grandparents. That’s the only reason why I was able to save £1,200 to put into my Help To Buy ISA; I recognise the advantages I’ve had aren’t available to everyone.” Isabella, 28, London
Our top tip:
If you’re not sure where to start with your finances, use NatWest’s Budget Calculator to look at your income and outgoings, and work out where you could cut back to save more. Or consider a Financial Health Check to see where your money’s at.
The saving checklist:
- Set a savings goal and track your progress
- Open a Lifetime ISA to maximise your savings
- Use a budget calculator to reduce your outgoings
Discover how you can start saving towards your deposit with NatWest
*App available to customers aged 11+ with compatible iOS and Android devices and a UK or international mobile number in specific countries. Savings goal tool only available with Instant Access Savings Accounts.
