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  • FIRST POST
    • Quikstiks
    • By Quikstiks 11th Sep 17, 10:53 AM
    • 2Posts
    • 0Thanks
    Quikstiks
    Maximise Savings - First Time Buyers
    • #1
    • 11th Sep 17, 10:53 AM
    Maximise Savings - First Time Buyers 11th Sep 17 at 10:53 AM
    Morning Folks,

    As the title suggests, my partner and I are saving for our first home (both FTB's).

    To date, we're at about £13k. £4.5 each in HTBISA's and £4k in my cash ISA. I'm not counting in any governement bonuses, like some people did when the HTB first came out! This is physical savings.

    We haven't started shortlisting homes yet, but we feel there's enough saved now to put a deposit down on a modest starter home. We are modest earners, so our maximum budget is around £120k.

    We both want to buy within the next 12 months, so what should I do to maximise my current savings?

    I would like to move all my savings into a LISA, either side of the 17/18 and 18/19 tax years, to make the best of the bonuses, but it doesn't look like that will work for me if I plan to buy within 12 months.

    Should I wait and save in the LISA, but run the risk of price inflation, or keep my money where it is and just work with what I can earn that way?

    Thanks
Page 1
    • xylophone
    • By xylophone 11th Sep 17, 11:08 AM
    • 23,426 Posts
    • 13,622 Thanks
    xylophone
    • #2
    • 11th Sep 17, 11:08 AM
    • #2
    • 11th Sep 17, 11:08 AM
    You say that you want to buy in around a year's time.

    With regard to the money outside the ISA, you might wish to consider giving up ISA status in favour of a Nationwide Flexdirect current account with Flexclusive regular saver.

    You would open the current account with £2500 and make sure to cycle in/out £1000 monthly from a non NW account.

    http://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

    You would open a Flexclusive regular saver and contribute £250 a month.

    http://www.nationwide.co.uk/products/savings/flexclusive-regular-saver/features-and-benefits
    • Quikstiks
    • By Quikstiks 12th Sep 17, 9:44 AM
    • 2 Posts
    • 0 Thanks
    Quikstiks
    • #3
    • 12th Sep 17, 9:44 AM
    • #3
    • 12th Sep 17, 9:44 AM
    Thanks for the response xylophone, that's very helpful.

    So the suggestion is to put £2.5k into a NW FD Account now and then a further £1k before the end of each month, then take it back out a couple of days into the new month and then back in again before the end of the same month? Have I understood the cycle process correctly?

    If so, should I move the cycling £1k into my current account and do the movements from there, to avoid transfer fund caps on the ISA? I suggest this as I may keep my current cash ISA open for now and then move the funds back in at the end of the 12 months with NW. Or, I might just stay with NW and close the cash ISA, but I presume this allows me the flexibility.

    Thanks again.
    • xylophone
    • By xylophone 13th Sep 17, 2:16 PM
    • 23,426 Posts
    • 13,622 Thanks
    xylophone
    • #4
    • 13th Sep 17, 2:16 PM
    • #4
    • 13th Sep 17, 2:16 PM
    You have deposited your £2500 into Nationwide Flexdirect.

    Let's suppose you have a current account with eg Barclays - in the month after your deposit, you can fast pay £1000 out of Barclays into Nationwide and fast pay back again immediately - you have met the pay in requirement.

    Don't forget the Flexclusive Regular Saver for which the Flexdirect current account makes you eligible.

    Rather than send back the whole £1000, you may wish to use part of it plus the monthly interest on the Flexdirect current account to contribute £250 a month to the saver.
    • Joe_Bloggs
    • By Joe_Bloggs 13th Sep 17, 2:43 PM
    • 4,420 Posts
    • 1,559 Thanks
    Joe_Bloggs
    • #5
    • 13th Sep 17, 2:43 PM
    • #5
    • 13th Sep 17, 2:43 PM
    @Quikstiks
    It is your personal responsibility to check out and monitor property prices in your area. The sold prices are more informative that the for sale prices.

    A few percent more or less on a pittance may be inconsequential in the long run.

    J_B.
    Maintain a squeaky clean credit report wherever possible at all times.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
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