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What would you give up to buy your first home?

What would you give up to buy your first home?

Category: Mortgages

Updated: 14/06/2017
First Published: 14/06/2017

Being able to buy that all-important first home is a huge milestone, but it's also a significant challenge, with many financial sacrifices necessary along the way. But just how far would you be willing to go to realise that dream? The team at www.myvouchercodes.co.uk has investigated.

Savvy savers?

The survey found that 64.5% of respondents would be willing to stop going on holidays in order to save up for their first home, while a similar number (62.6%) would stop going to the pub or ordering takeaways, and a further 41.8% would give up their pricey gym membership, putting the money saved in a dedicated savings account instead.

However, not everyone was quite so willing to cut back on their little indulgences. Indeed, 5% said they'd never give up takeaways, while 4% wouldn't give up cigarettes and 2% refused to quit alcohol. Another 5% said they couldn't live without the internet, and 5% wouldn't cancel their SkyTV subscription, even if it meant renting forever.

"Giving up trips in general, whether abroad or to the local watering hole, shows that people are willing to knuckle down and focus on the pennies they could be saving," said Chris Reilly for My Voucher Codes. "Just don't ask them to give up their small pleasures: namely internet, cigarettes and the occasional glass of wine."

Make your sacrifices count

It can't be denied that it could take a long time to save up for a deposit, but it can be done – provided you really make those sacrifices count. You'll need to make sure you've got the right savings account in which to put all your hard-earned funds, preferably one that permits limited access – such as a notice account – so you're not tempted to withdraw the money on a whim.

However, now there are new kids on the house-saving block, specifically the Help to Buy ISA and Lifetime ISA (LISA), which should be a first port of call for anyone looking to buy their first home. At the moment, the Help to Buy ISA looks like your best bet – these accounts pay higher interest rates than the only cash LISA on the market (Skipton's deal pays just 0.50%), with a top rate of 2.27% available from Barclays, which could go a long way to boosting your savings.

But the real beauty of these accounts lies in the Government bonus. You're allowed to pay in up to £200 per month, and when you're looking to buy your first home, the Government will top up your pot by 25%, which could be a fantastic reward for all your hard work. Then all you have to do is find the best first-time buyer mortgage to make all your plans come together!

What next?

Find out how to save a deposit for your first home

Compare the best savings rates and Help to Buy ISAs

Make sure your credit score is up to scratch – if it isn't good enough, you won't be able to secure a mortgage, no matter how many savings sacrifices you've made

Check out the best first-time buyer mortgage deals to make your dream a reality

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
 
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