How to Save For A Mortgage While Renting

When it comes to saving money for a deposit on a house, many people suggest moving back in with the parents. Moving back home can save more money; however, the option isn’t always doable. It may be too far from work, cost too much in terms of travel, or it may put too much pressure on the relationship between you and your parents. Furthermore, if you are in a relationship, it can be challenging to move in with one of your parents, because you lose the element of privacy and independence. An option to overcome the issues mentioned would be to rent a property while saving for a deposit. Many people think this is somewhat impossible, but they are wrong. In this blog, we take a look at how you can save money to put a deposit down on your own home while living in rented accommodation.

Make Smart Changes

You may remember when you lived at home that your parents would tell you off for leaving a light on or letting the water run for long periods of time. Changing your habits and following those same rules that your parents implemented will help you save money. You can cut the costs of your bills by monitoring the amount of electricity and water you use. If you install a smart meter, you can keep track of how much electricity you are using, which can help you to indicate where you are spending the most money. Furthermore, to cut the cost of water you should consider swapping baths for showers, only use the washing machine when it is full, and you can also install a water saver in the loo! It will still flush the same, but just uses less water to do so, therefore, saving you money.

Avoid Booking Holidays

We all love to go abroad and soak up the sunshine, but in order to save as much money as possible, you want to avoid expensive holidays overseas. However, taking time to relax is essential, so we would suggest still taking time off of work but spending it a little differently. Instead, you could explore the local area, have pamper days, visit family members or take part in local activities. Keep focused on what you are saving for and the idea of not having a holiday this year won’t seem so sad.

Downsize Your Rented Property

You may be able to save a significant amount of money by moving to a smaller property than you currently live in. For example, if you are only living with your partner, but you are renting a three-bedroom property, you could move into a one-bedroom flat and potentially save a lot of money. However, ensure you do your maths because if the smaller property is further away from work or has higher bills attached to it, then it is likely it will end up costing you more. For more information on downsizing, take a look at our previous blog.

Don’t Lose Focus on Your End Goal

Saving money can be a long and dull process; you have to cut costs on the things you enjoy, and you can’t afford to do many things. However, as much as it can be disheartening not being able to go on that night out with friends or go away for the weekend with your family, remember what you are saving for. Setting up a direct debit to put savings away is a brilliant way to ensure you don’t get tempted to spend one month and not put any money aside. In addition to this, if you ever find yourself getting down about having little money to spend as the majority is going into savings, just look how far you have come. If you have already been saving for a year and you still have another seven to go before you reach your target, you may need to reconsider your end goal. Change the location, size or age of the property you want to put a deposit on. By making these changes, you can bring down the cost of the deposit and therefore, bring the finishing line closer. 

Now that you know how simple it is to rent and save for a deposit, we hope you can maintain your independence and live on your own. You don’t need to move back in with your parents if you don’t want to, you can rent a home and just save a little slower. Once you have got your deposit together, it is time to house hunt! We have a blog to help you know what to expect when buying a home, take a look, so you aren’t in the dark. Here at Godfrey, Short and Squire, we are estate agents that have a range of properties across West Devon. With homes for sale in Okehampton and the surrounding areas, take a look at our listings today to find your dream home.