Saving for a deposit? Mortgage experts share three tips to save £14k for a house deposit

Martin Lewis advises on savings accounts for deposits

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Buying a home is an aspiration for most Britons, however, with the average house price now sitting at £267,587, according to Halifax, it’s not a realistic goal for many individuals. House prices had their strongest monthly rise for 14 years in September which pushed the average cost of a home to a record high. Halifax’s latest house price index revealed today said last month the average cost of a home rose by 1.7 percent – or £4,425 in monetary terms.

The managing director of Halifax Russell Galley even said the average house price is now as “expensive as it ever has been”.

With house prices still seemingly on the rise, many Britons may be struggling with the prospect of having to save up a deposit.

Most people who buy a property will need a minimum of 10 percent which means buyers will need around £26,700 to actually buy a home.

Help to Buy schemes, while supportive, still require a five percent deposit which is still around £13,000 based on the average UK house price.

If you are looking to save up a deposit, there are some lifestyle changes you can to bump up your savings.

My Local Mortgages has shared the following tips to saving £14,000 so you can afford your one day buy your dream house.

1. Give up smoking

Smoking is not only bad for your health but also a strain on your purse strings.

According to My Local Mortgages, the average cost of a packet of 20 cigarettes is around £10.

If you smoke around 10 cigarettes each day, it could cost you around £5 per day.

If you give them up and put the money you spend on them in your savings, you will have saved almost £2,000 in a year.

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In two years that would be almost £4,000.

If you and your other half both smoke then you could save double the amount if you both quit.

2. Lunch on the go

Making your lunch in advance is a great way to save money.

Grabbing a meal on the go like a sandwich, a bar and a drink – or all three – may not seem expensive but it can actually quickly add up.

According to the British Sandwich Association, the “British sandwich market bought ‘on the go’ is currently worth £2.8billion.”

In the last 12 months, 1.69 billion sandwiches were sold “on the go”, costing £1.66 on average.

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If you add extra snacks and drinks to your purchase, this could easily end up costing around £3.

Spending £3 five days a week amounts of £780 each year.

3. Rent

The average UK rent for tenancies was recorded as £953 per calendar month – a whopping £11,436 a year.

For some people, renting is the only way to work and live close to family and friends.

However, if you’re lucky enough to live close to your parents to get to work, and your parents have the space, it could save you more money to move back in with them.

A survey by the National Housing Federation found that over a quarter of parents (27 percent) have at least one adult child aged 21-40 living with them at home.

Meanwhile, 22 percent of survey respondents said their children were only living at home to save up a deposit for a home.

It may seem like a strain but living with your family could help you out in the long run.

If you can’t live at home, try renting somewhere cheaper or moving into a house share.

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