How To Save For A Mortgage And Plan Ahead To Buy Your First Home

There are ways you can save on household bills, too. Is My Bill Fair, Compare The Market and USwitch all help you compare what you’re paying. If you find a cheaper deal then either switch to a competitor or ask your supplier for a better one.  

[Read More: How to save money on your energy bill, as ‘eye-watering’ price cap rise announced]

3. Use Apps To Save Little And Often.

Every little helps and apps can make life easier when it comes to saving. If you bank with HSBC, Santander, Lloyds, NatWest, Nationwide, RBS, TSB, Halifax, First Direct, Co-operative Bank or Metro, you can use an app called Chip. This works by calculating how much you can afford to put away – and then deposits it into savings automatically. (It’s a bit creepy because the bot on the app talks to you, but the concept is sound). 

Money Dashboard is a free app that describes itself as a “personal financial assistant”. If you have more than one bank account, it lets you keep track of your spending in one place and shows you exactly where your money goes. 

4. Move Home, If You Can.

Three in every five homeowners under 35 use cash from their parents when buying a property, according to Legal General. If you do have cash on offer, great. But if you don’t have the privilege of wealthy parents, there are other ways they can help.

If your parents live a commutable distance from your job (and will have you), you could save a lot by moving home and sharing bills with them. Some mortgages will also let your parents act as a guarantor, where they take on some of the risk by offering their home or savings as security on the loan. “There are a whole host [of mortgage types] out there, which people need to seek advice on before deciding what’s right for them,” says Blake.

5. Work Out Where To Put Your Savings.

“People need to look at their savings, and if they do have them, work out whether they’re getting the best [interest] rate on them,” Blake says.