A study by MoneySuperMarket has found more than half (58 per cent) of homeowners made tactical changes to their spending habits in order to save for their first home.
According to the price comparison website, nearly a quarter (23 per cent) spent on a credit card and cleared the balance at the end of each month in order to improve their profile to potential lenders, while nearly a third (32 per cent) paid off existing debts in the run up to their mortgage application.
One in 10 (9 per cent) also used cash more frequently during this timeframe to ensure lenders couldn’t see everything that was being paid for.
The spending first-time buyers restricted most was eating out (37 per cent), going on holiday (31 per cent), ordering takeaway (31 per cent), and buying clothes (30 per cent). More than a tenth also reduced their Netflix subscription (13 per cent), going to festivals (15 per cent) and seeing friends (12 per cent) in order to ensure their finances were in the best possible state.
Homeowners surveyed saved an extra £369 per month on average in a bid to get on the property ladder, with the average saved totalling £10,182. People aged 25 to 34-years-old saved the most (£398 a month, or an average of £11,320), while over 55s saved the least (£308 per month, averaging £6,324).
MoneySuperMarket consumer affairs spokesperson Rachel Wait says: “Buying a property is probably the most expensive purchase you’ll ever make, so every penny counts when you’re trying to build up a deposit on your first home. Whether it’s giving up your Netflix account, cutting back on eating out, or forgoing expensive holidays, these sacrifices can build up a significant amount of money to put towards a deposit.”