Here are some tips to help you save for a house deposit.
Analysing your spending habits can help you manage your money. You’ll be able to see if you’re overpaying for anything, and areas you could potentially cut back on.
Creating a budget can help you set yourself spending limits and determine how much you have spare to save each month.
If you’re an HSBC UK customer, you can use tools like the Balance forecast feature on our mobile banking app. This feature shows you how much you could have left in your account once scheduled Direct Debits and standing orders have been paid.
Use our budget planner to get started.
Opening a savings account specifically for your home deposit can help you keep it separate from your everyday spending account and other savings accounts.
The best type of savings account for you will depend on:
See how some of the different types of savings accounts work.
Finding out how much could you borrow on a mortgage can help give you an indication of the type of property you could afford. It may also help you work out how much you would need to save for a home deposit. You could then use this to help you set a goal to work towards.
When saving a deposit for a home, make sure you’re prepared to cover other costs involved in buying a property, such as conveyancing fees and moving costs.
Explore: How to set and achieve savings goals
Whatever you're saving for, you can create and track your savings goals in our app if you have an eligible savings account.
You may be eligible for financial support from the government when it comes to buying your own property. Government first-time buyer schemes include shared-ownership, and the Forces Help to Buy scheme. Whether you’re eligible will depend on the scheme requirements.
You can find out more about the government’s home ownership schemes, and if any could potentially suit you, on GOV.UK: Affordable home ownership schemes.
Explore: What are the government’s home ownership schemes?
Please note, affordable home ownership schemes are initiated and monitored by the UK government and are subject to change.
If you have a skill to share, why not see if you can increase your income by doing a bit of freelance work? You may need to check this with your current employer, and also check if you need to pay tax, but it can be a useful way to earn some extra cash.
It won't always be possible, but downsizing your property is a quick way to cut the cost of rent and increase how much you can save. You can then put the money you would have spent on rent aside for your deposit. You may also be able to reduce the cost of your energy bills if you’re able to move into a smaller property.
Moving into a flat share could reduce how much you’re spending on rent each month and help bring down your outgoing costs. For example, you may find contributing to energy bills is cheaper than paying for it all on your own. Finding somewhere close to your workplace could also reduce your travel expenses.
Look at flat share websites or ask friends who may have a room to spare. Make sure to read through your tenancy agreement before agreeing to rent a room – including any stipulations around covering the rent.
