How to budget and save for your first home

Careful budgeting and saving are important steps when preparing to buy your first home. Just like any major life decision, it’s essential to review your finances, understand your goals and build a savings plan to help you reach that all-important deposit.

This helpful guide shares practical tips for first-time buyers to make budgeting and saving more manageable.

1. Understand the costs
2. Start saving money for a house
3. Analyse your expenses
4. Look for extra support
5. Watch the market

1. Understand the costs

Before you start saving, make sure you’re aware of all the costs involved in buying a home. These include:

• Your house deposit (and the value of the house)

• Stamp Duty*

• Mortgage payments and fees

• Solicitor fees

• Legal costs

• Surveyor’s fees

• Insurance

• Moving costs

For a more detailed breakdown of the fees associated with buying your first home, read at our guide here.

*subject to change.

2. Start saving money for a house

Set realistic financial goals based on your income and monthly expenses. Create a dedicated savings plan to help you save for a house deposit, while always leaving a buffer for unexpected costs.

It helps to have additional funds available to cover variable mortgage rates, emergency repairs, or living costs during the moving process.

3. Analyse your expenses

To grow your savings faster, look for areas where you can reduce spending:

• Switch to cheaper utilities providers

• Give yourself one treat meal a month, like your favourite takeaway or restaurant

• Reduce commuting costs by walking and cycling

• Sell any unused or unwanted items

• Consolidate debts into one manageable monthly payment

• Use a budget planner to track how much you’re saving

Need more advice? Visit the Money Helper website for further money saving tips.

4. Look for additional support

Explore financial schemes and support available to help first-time buyers

At Tilia Homes, we offer a range of first-time buyer support options, including advice on first-time buyer mortgages and home buying schemes like shared ownership.

5. Watch the market

The property market is always changing, so it is best to stay up to date with government schemes and any new home buying incentives to ensure you find the best deal to suit you.

Buying support from Tilia Homes

At Tilia Homes, we’re proud to offer guidance and support if you’re considering purchasing from one of our new build developments.

To learn more about buying your first home, you can get in touch with us or check out our other first-time buyer guides here.