Saving for a deposit is one of the first steps towards getting a mortgage and can be one of the most daunting.
Getting started can be intimidating as you consider the scale of the total amount that you’re looking to save but breaking the process down into more manageable chunks can make things easier so that you can achieve your savings goals.
Be honest with yourself
Setting realistic savings goals means being brutally honest with yourself about what you can achieve.
If you can only afford to put aside €200 a month, there’s no point setting yourself a goal of saving €10,000 in a year.
Keep your receipts for all transactions for a month and track your income and expenditure.
Once you have these figures, map out a plan for the next 12-18 months and calculate how much you can afford to commit to your mortgage saving account and once you have that plan, stick to it.
Being strict with yourself will be difficult at times, but it will all be worth it when you get the keys to your first home.
Work backwards
Almost as important as how much you can save, is how much you want to save.
The residential property price register allows you to input an address, date range, and area and will show you what properties are selling for under the search criteria that you have entered.
This will give you a good idea of how much of a deposit you will need to save to be able to afford your dream home in your chosen area. Keep in mind that house prices may increase or decrease, so it may be a good idea to visit the site regularly.
Once you have this number, break it down into monthly or weekly savings goals and celebrate when you reach each milestone.
Set up a dedicated mortgage savings account
It may seem like a no-brainer but having a secondary savings account just for your mortgage savings is the key to achieving your savings goals. Our Mortgagesaver account* is designed to help you save the deposit for your home.
Once you have the account open, you need to treat your monthly or weekly savings as if it is a bill; something that needs to be paid on time.
If you’re not too confident in your willpower or ability to transfer funds into savings as soon as you get paid, set up an account into which you can have a standing order or direct debit paid automatically as long as you can afford to do so.
That way you get all the pleasure of watching your savings balance grow without having to remember to manually transfer funds in.
Give yourself a break
In order to reach your savings goals, you will probably need to make some cuts and tighten the purse strings in a lot of areas. But allowing yourself to relax every now and then is crucial to ensuring that you can stick to your savings plan long term.
A good rule of thumb is to follow the 80:20 rule with regards to your savings. Be strict with yourself and save 80% of the time but for the remaining 20% allow yourself a little bit of leeway for some low-key spending.
Saving can be a drag, but by making a plan and breaking down your aims into bite-size chunks makes things less overwhelming and places your targets within reach . Once you get into the swing of things you’ll be saving regularly without even having to think about it and before you know it you’ll be well on your way to meeting your goal.
Bank of Ireland Mortgage Bank u.c. trading as Bank of Ireland Mortgages is regulated by the Central Bank of Ireland.
Bank of Ireland trading as The Mortgage Store – powered by Bank of Ireland is regulated by the Central Bank of Ireland.
* Terms and Conditions Apply. Mortgage Saver is provided by Bank of Ireland. Bank of Ireland is regulated by the Central Bank of Ireland
