New research by Halifax shows that almost half, 48% of would-be first time buyers aren't confident of being able to raise a deposit for their first property. Yet many are failing to take advantage of everyday savings which can make a big difference to their deposits.
Yet, by making a few simple lifestyle adjustments such as cutting their alcohol consumption by two pints per week, giving up a latte on the way to work, swapping from bottled to tap water, cutting down on takeaways and cancelling gym membership, they could save £147.37 per month.
If they are a smoker with a 20 per day habit they could more than double the amount saved from above by saving an additional £1,930 over the year, bringing total savings to £3,698.44.
The top savings are stopping smoking, £160.83 per month or £1,930 a year, cancelling a gym membership would work out at around £42.37 a month or £508.44 a year, giving up one take away coffee a day would save £37.80 a month or £453.60 while cutting out a weekly takeaway meal would amount to around £35.96a week, £431.52 a year. Drinking two less pints a week could save £22.56 or £270.72 over a year and swapping a litre of bottled water for tap water amounts to a weekly saving of £8.68 or £104.16 a year.
On top of this other options include switching energy suppliers, swapping driving for cycling or walking, and taking advantage of the growing trend for online discount vouchers to help boost their deposit savings.
'Our research shows that spring cleaning your finances can potentially save first time buyers thousands each year. By identifying a few simple changes to their everyday routine and saving regularly, first time buyers can make a big boost to their deposit pot,' said Jaedon Green, head of mortgage development at Halifax.
