How to Raise Money for a House

Owning a house is one of the most expensive purchases you can ever make. Whether you’re still saving for a deposit or you own a house and now you want to make changes or decorate, there will always be times when a house costs you money. The more prepared you are for the expense of a house, the easier it will be to deal with your outgoings. Here are some tips on how to raise the money you need when you need it.



Create a Budget

When you want to raise a little extra money for something, you may find that you have to cut back in other areas of your life. Making a budget and sticking to it is often the best way of getting the money you need. Make a list of all the things you spend money on in an average week and separate them into essentials and non-essentials. Take a look at your non-essentials and decide which ones you can cut back on. Just by eating less takeaways and cancelling subscriptions to TV channels, Netflix or Amazon Prime, you can save yourself money that can be saved towards something else. It may be a slow way of raising the money you need, but it means you can do it without help.

Open a Savings Account

Do some research and try and find out which savings accounts offer the best interest rates. Depositing your money into a savings account will mean you earn more money without having to do much. However, the accounts with the best rates often have loop holes. For instance, you may have to leave the money in an account for a certain amount of time before being eligible for the interest you’ve gained. There are many accounts dedicated to first-time buyers for saving a house deposit. The downside is you often have to keep the money in the account for at least 12 months before you’re given any interest. Therefore, if you’re thinking of using this option, it’s best to start saving three years in advance so you can really take advantage of the benefits.

Reduce Your Debt

It may not seem like reducing your debt could save you any money in the short-term, but it can do a lot for you in the long-term. Working to reduce your debt will mean you aren’t paying as much towards your debt every month, therefore having a bigger disposable income. It also puts you in the good books with lenders. The more efficiently you manage your debt, the more attractive you become to lenders when you want to apply for more credit. Reducing your debt will give you a better credit rating and more financial prospects for the future.




There’s one sure fire way to get money when you need it quickly and that’s a loan. Getting quick loans will give you the opportunity to invest in your house as soon as you’re ready. However, there are many instances when home owners need money in a hurry. For example, if the washing machine has flooded the floor and both need replacing. It’s tempting to accept whatever loan is offered in those circumstances, but you may end up paying more than you’re able to afford if you aren’t careful. Take a few hours to do some research and get the best APR available to you.

Know What You’re Spending

Many people get paid a salary and wonder where it disappeared by the end of the month. If you’re trying to save money, it’s important to know exactly where your money is going. If you’re out shopping on the weekend, buying things you fancy, without knowing how much is in your account, your money isn’t going to last long. Take the time to sit down and calculate everything that comes out of your account each month. Make allowances for food, clothes and other essentials. When you’ve calculated your bills, minus them from your take home pay to find out what you should have left every month. Try and save as much of that disposable income as you can.

Get a Good Deal

We sometimes take the bills we’re paying for granted. Our car insurance payments come out of our accounts like clockwork and we never think to question them. You can save money by doing a little hunting. For example, it may benefit you to switch supermarkets so you save on your grocery shop every week, or you may be able to save on your insurance by adding all of the cars in the family to one account, instead of paying separately. It takes time and effort to go through all of these things, but you may make some significant savings by doing so.


If you’re trying to raise money for a deposit on a house as a first-time buyer, you could ask family members if they’d be interested in investing. It’s a way of getting a foot through the door without having to wait years to save a significant deposit. A family member could give you your 10-20% deposit with the agreement that you make regular payments to pay them back. If you sell the house in the future and it sells for more than you bought it, your family member would also get a percentage of the interest. So, if your family member gave you a 10% deposit on a £100,000 house and you sold the house for £105,000 a few years later, your family member would receive £10,500 back.



Sell Goods

You may have some valuable items that you no longer want or need. One of the best ways to raise money quickly, other than getting a loan, is to sell goods. Items like, electricals, jewellery, designer goods or artwork can be worth a lot of money in good condition. It’s worth finding out what your items could sell for. Instead of trying to sell them yourself, you may want to pass them on to someone who has experience of making a sale. You could put your items up for auction or give them to someone who sells on sites like eBay or Amazon for a living.


If you’re trying to save for a deposit on a house but all of your money is going on rent, it’s going to take you a long time. You may want to consider looking for somewhere cheaper to live. You may have to give up some of the luxuries that you’re used to, but remember that it’s a stepping stone to something bigger and better. One of the best ways that young couples can save money is to move back in with parents for a short while. Ask your parents if they mind you living with them rent free so you can save that money quickly and easily.

Get a Lodger

If you already own your own home but you need to raise money to keep it, renting out a room could be a good option. It doesn’t have to be forever, but it’s an ideal solution when you need some extra cash coming in. It can help you to pay for all of the utilities, along with the mortgage. Seek some advice on how to interview potential lodgers and offer a short-term contract. If you live in an area near to schools, it could be perfect for a student.

Saving money can be difficult, but if you’re determined to do it you’ll find that a little can go a long way over time, so don’t give up!

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