Full 100% mortgages have made something of a comeback after largely disappearing from the market in light of the global crisis of a decade ago.  However, it isn’t always a good idea to take out such a large mortgage.  There are three reasons for this.  The first is that not all mortgage providers offer 100% mortgages, so this will restrict the number of lenders you can apply to.  The second is that you’ll end up paying more money for your borrowing as lenders reserve the most competitive rates for those with a 10% or even 20% deposit.  Finally, there’s always the danger of negative equity.  Although people tend to assume that property prices are always on the rise, this isn’t the case. If the property market were to collapse, you’d end up owing money on a home that you can’t resell without losing a great deal of money. 

In order to save money for a home deposit, you first have to put a budget in place.  To do so, you should take the time to account for every penny you spend for at least a fortnight.  Just writing down all your expenses will give you an idea of where you can make reductions. 

You should first analyse your priority debts such as housing costs, utility bills, etc.  If you’re living in rented accommodation, you could make alternative arrangements to keep costs down such as moving in with relatives/friends or downsizing.  As far as utility bills are concerned, you should economise and think about whether you’re getting the best possible deal for your money.  If necessary, use price comparison sites to shop around for a better contract. 

You’ll probably see that the greatest reductions in your expenses can be made with your discretionary spending.  There are many ways to save money.  One key area is the money you spend on your day-to-day expenses.  You might decide not to buy a coffee every morning on your way to work, or you’ll make even more savings if you bring food in to eat during your lunch break instead of buying a takeaway. 

One way to cut your discretionary spending is to limit how much you spend on your hobbies and entertainment.  For example, instead of an expensive gym membership, you might decide to go jogging in the park.  For evening entertainment, there are plenty of free alternatives to expensive theatre tickets and flashy clubs.  You could arrange to meet your friends at home for some food and music.  Also, in UK there are plenty of museums, art galleries and botanical gardens which don’t charge a penny.  Cashfloat short term loans can help if you need money urgently.  An online application can be made in a matter of minutes, and the approval comes almost as fast.  If you’re saving for a home deposit, this helping hand can make all the difference between saving up enough for the home of your dreams and not making it.