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  • FIRST POST
    • mohawk1
    • By mohawk1 11th Jun 17, 11:18 PM
    • 10Posts
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    mohawk1
    Saving up for a Mortgage?
    • #1
    • 11th Jun 17, 11:18 PM
    Saving up for a Mortgage? 11th Jun 17 at 11:18 PM
    Hi all.

    Hope this thread is in the right place!

    Me and my girlfriend would like to start saving up for a Mortgage on an apartment/house - would a joint savings account be the best thing to do right now in this situation?

    Thanks,
    Ben.
Page 1
    • Westminster
    • By Westminster 12th Jun 17, 7:42 AM
    • 759 Posts
    • 462 Thanks
    Westminster
    • #2
    • 12th Jun 17, 7:42 AM
    • #2
    • 12th Jun 17, 7:42 AM
    Whether its joint or not is unlikely to be a key factor.

    I would be looking for the best interest rate - which is likely to be with one of the various current accounts out there (my wife & I have 30+ current accounts between us to benefit from the high rates but relatively low limit on which that rate is paid).

    Take a look here: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest
    Hi. Martin has asked me to tell you I'm a Board Guide on the following boards: Mortgages & Endowments, Mortgage-Free Wannabe, House Buying, Renting & Selling, Small Biz & Charities' MoneySaving and Charities.

    I'm a volunteer to help the boards run smoothly, and I can move and merge posts on there. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
    • Edi81
    • By Edi81 12th Jun 17, 7:47 AM
    • 260 Posts
    • 142 Thanks
    Edi81
    • #3
    • 12th Jun 17, 7:47 AM
    • #3
    • 12th Jun 17, 7:47 AM
    What Westminster said. Go for the best interest rate you can find. Difficult as rates are so low but current accounts are a good start.

    Ps - you're saving for a deposit to allow you to buy a house with a mortgage (it's just another word for a loan secured on the property).
    • mohawk1
    • By mohawk1 12th Jun 17, 1:42 PM
    • 10 Posts
    • 0 Thanks
    mohawk1
    • #4
    • 12th Jun 17, 1:42 PM
    • #4
    • 12th Jun 17, 1:42 PM
    Thank you for your replies!

    What about the help to buy scheme? would I benefit from that instead of a joint savings account?
    • Westminster
    • By Westminster 12th Jun 17, 2:04 PM
    • 759 Posts
    • 462 Thanks
    Westminster
    • #5
    • 12th Jun 17, 2:04 PM
    • #5
    • 12th Jun 17, 2:04 PM
    Regarding HTB I have no direct experience.

    Try here: http://www.moneysavingexpert.com/mortgages/mortgage-schemes
    Hi. Martin has asked me to tell you I'm a Board Guide on the following boards: Mortgages & Endowments, Mortgage-Free Wannabe, House Buying, Renting & Selling, Small Biz & Charities' MoneySaving and Charities.

    I'm a volunteer to help the boards run smoothly, and I can move and merge posts on there. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
    • csgohan4
    • By csgohan4 12th Jun 17, 2:18 PM
    • 3,636 Posts
    • 2,271 Thanks
    csgohan4
    • #6
    • 12th Jun 17, 2:18 PM
    • #6
    • 12th Jun 17, 2:18 PM
    Read up on the HTB, your still borrowing and your kicking the can down the road, you will usually pay more back than you paid in as the government takes back the percentage you borrowed from the house at the time you pay back.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Whoknowskt89
    • By Whoknowskt89 12th Jun 17, 3:15 PM
    • 261 Posts
    • 621 Thanks
    Whoknowskt89
    • #7
    • 12th Jun 17, 3:15 PM
    • #7
    • 12th Jun 17, 3:15 PM
    I think the poster may have meant the help to buy isa rather than the mortgage schemes.

    http://www.moneysavingexpert.com/savings/help-to-buy-ISA

    Also check out the Lifetime isa
    August 2017 £9160/£11,150 savings aim for EF and moving (by Jan 2018)
    Mortgage £67 483 Emergency fund £1500 Moving fund £7660 Treats account £838 Doing up flat £1050
    Christmas 2017 £100/£160
    • mohawk1
    • By mohawk1 12th Jun 17, 4:17 PM
    • 10 Posts
    • 0 Thanks
    mohawk1
    • #8
    • 12th Jun 17, 4:17 PM
    • #8
    • 12th Jun 17, 4:17 PM
    That's the one! thank you!

    I need to read that article and digest it. Me and my girlfriend could have an account each, for our house, right?
    • Whoknowskt89
    • By Whoknowskt89 12th Jun 17, 4:21 PM
    • 261 Posts
    • 621 Thanks
    Whoknowskt89
    • #9
    • 12th Jun 17, 4:21 PM
    • #9
    • 12th Jun 17, 4:21 PM
    Yes, though there are limits to how much can be saved in the account.
    I can't tell you the limits as they were never available to me and now can't use them as I own a property.

    Any money over, stick into other savings account. This website has a note of the best interest accounts available

    E.g. If the Max into help to buy isa is £300
    Normally save £400 so £300 to isa as you'll get the government bonus and then £100 to a regular saver paying 3% interest
    August 2017 £9160/£11,150 savings aim for EF and moving (by Jan 2018)
    Mortgage £67 483 Emergency fund £1500 Moving fund £7660 Treats account £838 Doing up flat £1050
    Christmas 2017 £100/£160
    • mohawk1
    • By mohawk1 12th Jun 17, 4:38 PM
    • 10 Posts
    • 0 Thanks
    mohawk1
    Thanks for your help guys.

    I've looked on the Barclays website (who I bank with) and you can only save up to £200 per month max. Mine would be a much lower account than this though for now.

    What are the benefits of me opening the account up with a max of £1200 and not a starting account at say, £50? Eventually, when I save £10k won't it all benefit me the same way? if I open up with the max limit or the smallest?
    • smem18
    • By smem18 12th Jun 17, 5:06 PM
    • 27 Posts
    • 8 Thanks
    smem18
    Based on how much you have said you can save, I would recommend you go for the Help to Buy ISA. You and your partner can each have one and save as much as you can into it. The interest rates on savings accounts and ISA's are so lousy at the moment that I believe the H2B is the best option for you, as you at least get 25% back on what you save. Also, the interest rate on the H2B ISA's at the moment are very competitive. I somehow got a 3.5% rate on my Halifax one that I opened a year ago.

    You don't have to open up with the maximum limit. The initial £1200 just lets you save a lump sum to get yourself started with a larger amount of savings in there, then you can follow it up with up to £200 per month max.

    One point to consider very carefully however, is what do you anticipate the cost of the property you are going to buy will be? If it is over £250,000 outside of London, or over £450,000 inside of London, then you won't get any bonus from the Help to Buy ISA. You can still save into the H2B ISA and the money will still be yours, plus any interest it earns, but you won't get any bonus if the property costs over the limit. We just got caught out by this - we are buying a £320k property in the South East so we don't get any bonus on our H2B money, even though we are literally 0.2 miles from the London border. I don't feel too bitter though because I am really happy with the 3.5% interest rate I got on the ISA, which earned me way more interest than I would have got elsewhere.

    The second point to remember is that the H2B 25% ISA bonus cannot be used towards your exchange deposit. Your ISA money and interest can, but the bonus can't. Read up about this carefully to understand what an exchange deposit is and when it is due during the house-buying process. A lot of people fall foul of this.

    Thirdly, make sure you calculate and factor in your other expenses. Namely stamp duty and solicitor fees. Stamp duty is a killer!


    The lifetime savings ISA is also worth looking in to, however it sounds like you won't be saving more than £200 a month, so the H2B might be better for you. Alternatively you can look into a high interest paying current account. I have all my stamp duty money being paid into a Tesco current account that pays 3% on the first £3000
    • LuckyG
    • By LuckyG 12th Jun 17, 6:09 PM
    • 132 Posts
    • 215 Thanks
    LuckyG
    I used a help to buy ISA with nationwide, I put the £1200 in straight away then saved £200 a month in it.
    It was really worth while, I've only just closed mine so my solicitor is in the process of claiming the bonus, which should be about £750.

    I wanted to save more than £200 a month so I also opened an instant access savings account (also with Nationwide). This one hasn't paid out much interest, the help to buy ISA paid out about £42 in the 10 months or so I had it.
    • ruperts
    • By ruperts 12th Jun 17, 6:50 PM
    • 532 Posts
    • 853 Thanks
    ruperts
    Definitely go with the Help to Buy ISA if it's your first home (or the lifetime ISA if you can save more than £200 per month and will definitely use it for a house purchase). You get 25% bonus on whatever you put in up to £200 per month, doesn't matter if you put the full £200 in or a fiver, you still get the same percentage bonus on top.
    • NiaS90
    • By NiaS90 13th Jun 17, 2:20 PM
    • 28 Posts
    • 4 Thanks
    NiaS90
    My partner and I both opened a HTB Isa in Dec 2015 we put the min £200 a month in each just about to purchase our first property and have over £2,000 in 'bonus' money this is paying for our stamp duty as well as sols fees. Its worth doing as it's 'free' money. Although you don't actually see the funds, it worth it to pay for fees etc
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