Once you’ve decided that you want to buy a home, it’s important to pause and take some time to reflect on what you’re ideally looking for and what you can realistically afford.

Consider your ideal location, whether that’s in the big city, a cosy suburb or the peaceful countryside. Consider the amenities that matter to you – do you want to live close by to them or keep a bit of distance? What type of home do you want to live in? How much space do you need?

Answering these important questions will help keep your property search focused. This way, you can evaluate what’s available on the market, define your priorities, and set a clear savings goal.

A good way to see how much you can save is by tracking your spending habits. Take the time to review your outgoings to work out how much you can afford to save each pay day and also look for areas where you could cut back to free up more money to grow your deposit. You’ll want to find a home for these savings, too. There are dedicated savings accounts to help first time buyers, such as our First Home Saver.

Remember, your deposit isn’t all you need to save up for. There will be other fees to consider, such as legal fees, stamp duty, valuation fees, mortgage charges and even the cost of hiring a removal van – it all adds up. First time buyers are currently exempt from one of the biggest costs – Stamp Duty – on properties worth up to £425,000. However, our First Time Buyer Economy research¹ has found that on average they pay £3,326.50 in upfront costs (including Stamp Duty Land Tax) when buying their first home.

Interest rates today are now higher than we've seen over the last decade, which makes it a great time for savers to consider putting their savings into an ISA or another account. This is excellent news if you’re on the journey to save for your first home, as better rates will help your money grow more quickly.

The way to take advantage of these rates is to make clever choices when selecting a savings account, ensuring you look for the best rates and access to your funds. To dive deeper into what high-interest rates mean for savers, you can read our blog.

When you’re applying for a mortgage, having a good credit score will work in your favour. It lets lenders know that you’re a reliable borrower and plays a central role in whether you can get a mortgage.

There are three main credit bureaus you can search for online which can provide you with information on your credit score – Experian, Equifax, and TransUnion.

There are also various ways to show lenders that you’re responsible with your finances and improve this rating. You may benefit from advice about credit builder cards, but the best way to build your score is simply to keep on top of your bills and show consistent debt payments. Even registering to vote can boost your score. By taking these steps, you can ensure you’re well on your way to securing a mortgage. 

Once you’re in your new home, there will be regular costs you’ll need to consider and plan for. Managing these bills can come as a shock, especially if you’ve previously been living with family or in rented accommodation where bills were part of the package. Expenses like energy, water, the internet and council tax can quickly mount up, so it’s important to calculate these before you buy. By choosing your suppliers carefully, you can make sure your bills are as low as possible.

Also, most homes can be upgraded to boost their energy efficiency and this will cut down your energy bills. Investing some time in learning about energy-efficient home improvements will give you plenty of ideas for making your home less expensive to run.

Applying these savings tips and making a financial plan will help you to successfully navigate the path to homeownership. Visit our Knowledge Centre for more useful tips.