'Save to Buy' savings accounts
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bowlhead99 wrote: »Basically once you get into the nuts and bolts of how exactly they get remunerated, you realise that the only way to get an honest result is for you to pay them an explicit fee (flat fee or percentage based) and then rebate to you any commission whatsoever that they receive off it. You might get lucky and pay them a £500 fee and get £400-£600 commission straight back. But you might get 'unlucky' where they tell you that a 5 year fix at First Direct with unlimited overpayments is actually the best deal, and there is no commission coming back to you, and you could have found it on the First Direct website yourself.
A very interesting way of doing it. I think when we get to this stage I will do a mixture, research myself and listen to their recommendations. I make the ultimate decision and I'm fairly sure if they tried to mislead me based on whatever gets them the heighest commission the financial ombudsman would be very interested!0 -
Thanks! Looks very similar to the nationwide one except it has a maximum monthly input so I wouldn't be able to put a lump sum in at the end. Also 2.55% isn't bad at all for an isa (comparatively!).
I'll keep looking but so far looks like my plan is to use this Newcastle one as a main savings account and the Nationwide one with the minimum monthly contribution just in case.0 -
The rates at a 10-15% LTV as a first time buyer looking for fixed rates are pretty similar between the two, so you might as well hedge your bets.
Although at a glance, Nationwide has a price break if you can stretch to 15.001%, while Newcastle wants 20%, and Newcastle have a considerably higher Standard Variable Rate which is probably a consideration - although nobody knows what that rate will be by the time you come off any fixed deal and the market rates have gone up.
One final suggestion, if there are two of you saving for the account, you could each have a Newcastle account in your own names, allowing you to hit the £10k minimum for max cashback quicker, and then cut back to £1 pm. A joint mortgage will consider the total deposits of both of you added together for cashback purposes. It may or may not be important to you to not use so much of your own annual ISA allowance (probably not if all your money is going into the house, but you never know).0
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