For many aspiring homeowners in the UK, the dream of saving for a deposit can feel out of reach. However, one couple from Essex has proven it's possible, amassing a remarkable £15,600 towards their first property with the help of a smart money application.
The App That Transformed Their Savings
Olga Demi, a 37-year-old bank worker, turned to the Plum app after experimenting with other providers. Alongside her partner, she was drawn by the platform's competitive interest rates and user-friendly approach to managing personal finances.
'At first I doubted if we could ever afford a mortgage, and I had always found savings a struggle, but we have proved ourselves wrong,' Olga revealed.
The couple consolidated their funds into a Plum Lifetime ISA (LISA), which offered an attractive interest rate of 4.75%. The app's key features, including its AutoSaver function, automatically linked to their bank account and regularly moved money into designated savings pots, making the process effortless.
Maximising Returns with a Lifetime ISA
The government-backed LISA scheme was central to their success. With an annual savings limit of £4,000, the account also qualifies for a 25% government bonus, effectively boosting annual savings to £5,000 per tax year.
Olga highlighted the simplicity of the Plum app and its attractive interest rate as the winning features for her and her partner. 'The breakthrough came when we mapped out our expenditures, paused discretionary spending, and set up automated savings so the money was out of sight and out of impulse,' she explained.
Their journey wasn't without its setbacks. Sadly, Olga's partner, who is in his 40s, had missed the window to open his own LISA by a few months, as the account is only available to those aged 18 to 39. 'Together, we estimate we forfeited around £7,000 in government bonuses, a real regret, but it also fuelled us to move forward,' Olga said.
Beyond the Numbers: A Lifestyle Transformation
Their savings mission sparked a complete shift in their financial habits and overall lifestyle. Olga shared that her partner, once sceptical of money-saving tactics, now enthusiastically hunts for supermarket reductions and meal deals.
Furthermore, quitting smoking contributed over £3,000 a year to their savings, while also improving their health and lowering insurance costs.
'It has taught us discipline, teamwork, and optimism,' Olga reflected. 'The pride we find in our growing savings motivates us every day.'
The couple now aims to purchase a home priced at approximately £360,000 by autumn this year, with a target deposit of 15-20%. Under LISA rules, the first home they buy must be £450,000 or less.
With over two million users, the Plum app offers a suite of tools like the Splitter tool and nine automatic savings rules to help build consistent habits. It analyses your spending to suggest how much you can afford to save each month and the best place for that money to grow.
Olga's final message is one of hope and determination: 'Keep an eye on us, we believe in what we’re building, both literally and figuratively.'
