The biggest and often the first obstacle any first-time buyer will meet is the deposit – that percentage of the house price that you are required to source yourself. It’s a significant expense and one that potential homeowners have a great fear of – but it is a realistic goal. How quickly you get there is dependent on your ability to curb your spending and start saving.
To do this successfully, you need to track your spending over a couple of months. Keep all your receipts and, at the end of each month, tally your income and your expenditure and this will give you a map of your spending and where you may be able to cut some costs.
Set goals and stick to them. You should set up a savings plan for a 12 to 18 month period to realistically be able to accrue a decent capital sum – but remember to inject a little of the 80:20 diet principle into your savings plan. That is, save 80 per cent of the time and indulge in a little low-key spending 20 per cent of the time.
It may seem obvious but once you break it down into bite-size pieces, saving becomes a habit and, much like going to the gym or healthy eating, once you start practicing it you can find yourself becoming competitive about it.
For more tips and key insights into the mortgage journey from application to drawdown, visit BankofIreland.com