How to save for a home of your own

How to save for a home of your own

Does the thought of having your own home seem like a financial impossibility? If you're well-prepared, it doesn't have to be. 

Saving for your future home

When you buy a house, you need to be able to put up some of the cost yourself. The more capital you have available from the outset, the more choice you'll have on the property market.

Whether owning a home has been your goal for some time, or you're not so sure if it is, building a capital base now is never a bad idea. Saving is always a good idea no matter what.

How much savings do I need to buy or build a home?

What your home will cost you comes to more than just the actual purchase price. There are other costs to bear in mind as well, such as notarial charges, mortgage fees and, if you're building a house, VAT.
A good general rule of thumb is 20% on top of the purchase price.

Two savings products and one alternative

1. Savings product with tax benefits

You could opt for a savings product with tax benefits to save for your future home

This could be a guaranteed-interest life insurance (class 21). Your savings pot can be used to pay for mortgage protection cover like our loan balance insurance (credit-linked life insurance policy) when you take out a mortgage with us. If you end up deciding to rent instead and you don't need a mortgage loan, you can always put your savings towards your pension instead.

You can include the sum you have deposited on your tax return and get 30% annual tax relief1 on it.

2. Classic savings products

As well as saving to cut your tax bill, you can also use more classic methods to save larger sums with a view to accruing capital for yourself to get you and your plans started.

If you prefer to play it safe with your savings and/or you're already planning to buy your own home within the next five years, saving automatically at regular intervals is the way to go. This is a highly effective way to build up the capital you need to get started.

3. Systematic investment

If buying your own home is still very far down the road, building up the money for it through an investment plan is well worth considering. With systematic investment, you automatically invest a certain sum of money at regular intervals. It's precisely this regularity that gives you more chance of a higher return. Your investment is spread over time and is less dependent on prices at one particular moment.

7 tips for better savings

7 tips for better savings

Get your savings working for you in a variety of ways, build yourself a nest egg and follow our 7 savings tips.
Saving by standing order

Saving by standing order

The easy way to save and build up a nice sum.