The Fixer: saving for a deposit

Have you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

It can seem impossible to get a fair result when you are battling a financial issue alone. But never fear! The AOL Money Fixer is here to help.

Dear Fixer,
My girlfriend and I would like to buy a flat in Coventry. We are both employed, but we only have a few thousand pounds in savings.

We would like to buy this year if possible, so we have decided to make a big effort to save more, in the hope of having a 10% deposit to put down against a flat by the end of the year.

Can you offer any tips to help us reach our goal? Thank you in advance.

D Evans, Coventry

Dear Mr Evans,
Regularly putting money aside is the best way to boost your savings. So the first thing to do is to sit down with your girlfriend and work out how much you can afford to save every month.

To maximise your savings, you also need to find a savings account offering a good rate of return. One option definitely worth considering is a Help to Buy ISA, with which you can save up to £200 a month tax free.

The main advantage of these accounts, designed specifically for first-time buyers, is that the government will top up your savings by 25% - up to a maximum of £3,000 - when you close the account to buy a home.

In order to qualify, you simply need to be buying a property worth £250,000 or less and to save at least £1,600 in the account.

The Help to Buy scheme is also worth looking into as it enables first-time buyers in your position to take out a mortgage with a deposit of just 5%.

Just remember when doing your calculations that buying a property involves other costs, including Stamp Duty if the flat you purchase costs more than £125,000.

The Fixer

Whatever your financial problem, write to themoneyfixer@aim.com and The AOL Money Fixer will get on the case.