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    • bhoy1976
    • By bhoy1976 11th Oct 17, 10:09 AM
    • 60Posts
    • 25Thanks
    bhoy1976
    Deposit dilemma
    • #1
    • 11th Oct 17, 10:09 AM
    Deposit dilemma 11th Oct 17 at 10:09 AM
    Not really sure what the best choice is for my wife and I. We're aiming to get on the housing ladder albeit a little late to the party.

    My wife is late 30's and I'm in my early 40's. Got one child and another on the way.

    House prices are very high where we live so Help to Buy Shared Ownership appears to be the only realistic option. For the size of property we need, deposits required and mortgage amount this way is affordable.

    So, how do we get that deposit? We can't move in with our parents, have any inheritance or the like so it will just be save, save, save.

    What are the best choices open to us?
Page 1
    • 00ec25
    • By 00ec25 11th Oct 17, 10:18 AM
    • 5,557 Posts
    • 4,947 Thanks
    00ec25
    • #2
    • 11th Oct 17, 10:18 AM
    • #2
    • 11th Oct 17, 10:18 AM
    sorry but why do you "need" to own?

    you are "old" yet you apparently have no savings as a result of your passage through life to date. You have a child which does of course explain why you have no savings as they are "expensive"

    how do you expect to save a deposit when you apparently have no surplus income from which to do so and no magic/windfall to bail you out?
    - get a second job so you have more income?
    - do what 20 something's do who want to "get ahead" and go without so you can save more?
    - buy cheaper "things" and buy less "things" so you reduce expenditure where ever possible?
    • marliepanda
    • By marliepanda 11th Oct 17, 10:33 AM
    • 4,865 Posts
    • 9,813 Thanks
    marliepanda
    • #3
    • 11th Oct 17, 10:33 AM
    • #3
    • 11th Oct 17, 10:33 AM
    Its going to have to come from somewhere, so yeah, save.

    With help to buy you only need to save 5%, so focus on that and make sure your affordability works with the loan from HTB also.
    Survey Earnings 2017 - £163
    • Grenage
    • By Grenage 11th Oct 17, 10:39 AM
    • 1,324 Posts
    • 1,254 Thanks
    Grenage
    • #4
    • 11th Oct 17, 10:39 AM
    • #4
    • 11th Oct 17, 10:39 AM
    If you cannot save the required deposit, then you cannot purchase a property; that is the long and the short of the situation.

    So you can 'save, save, save', or 'rent, rent, rent'.

    Moving to a less expensive area is another option.
    • bhoy1976
    • By bhoy1976 11th Oct 17, 10:41 AM
    • 60 Posts
    • 25 Thanks
    bhoy1976
    • #5
    • 11th Oct 17, 10:41 AM
    • #5
    • 11th Oct 17, 10:41 AM
    Er thanks, 00ec25.

    I was really looking for which savings plans i.e. ISA, savings account etc but thanks for the moral input anyway.

    Yes the 5% is a realistic target, marliepanda.

    Just need to choose the correct option of where to save for it to get the best interest.
    • bhoy1976
    • By bhoy1976 11th Oct 17, 10:45 AM
    • 60 Posts
    • 25 Thanks
    bhoy1976
    • #6
    • 11th Oct 17, 10:45 AM
    • #6
    • 11th Oct 17, 10:45 AM
    Wow there's some real slap downs here.

    We're looking to save for a deposit. We just wanted to know where would be best to put that money for interests sake.
    • Comms69
    • By Comms69 11th Oct 17, 10:45 AM
    • 1,230 Posts
    • 1,012 Thanks
    Comms69
    • #7
    • 11th Oct 17, 10:45 AM
    • #7
    • 11th Oct 17, 10:45 AM
    Er thanks, 00ec25.

    I was really looking for which savings plans i.e. ISA, savings account etc but thanks for the moral input anyway.

    Yes the 5% is a realistic target, marliepanda.

    Just need to choose the correct option of where to save for it to get the best interest.
    Originally posted by bhoy1976
    savings plans? Really? Interest is pitiful at the minute, lucky if you keep up with inflation!


    What is your surplus income every month?
    • bhoy1976
    • By bhoy1976 11th Oct 17, 10:48 AM
    • 60 Posts
    • 25 Thanks
    bhoy1976
    • #8
    • 11th Oct 17, 10:48 AM
    • #8
    • 11th Oct 17, 10:48 AM
    Why is everyone so negative?

    Did I come to the wrong place?

    Surplus income varies from month to month
    • Lolly88
    • By Lolly88 11th Oct 17, 10:53 AM
    • 237 Posts
    • 737 Thanks
    Lolly88
    • #9
    • 11th Oct 17, 10:53 AM
    • #9
    • 11th Oct 17, 10:53 AM
    Why is everyone so negative?

    Did I come to the wrong place?

    Surplus income varies from month to month
    Originally posted by bhoy1976
    Ignore the negative comments whilst most people on here are helpful, some people are incredibly rude.
    House Fund - £30142.19
    Save 7k in 2017 #6: £7142.19/£7,000
    Save 12k in 2016: £14,750/£12000 - Save 6k in 2015: £8250/£6000
    • Rambosmum
    • By Rambosmum 11th Oct 17, 10:58 AM
    • 1,548 Posts
    • 2,011 Thanks
    Rambosmum
    It matters little where you save at the moment, interest rates are awful.


    I would however consider moving to a cheaper area if that is possible?


    Realistically, how long is it going to take you to save up a deposit? You'll also need moving costs, solicitor fees etc. Interest rates are set to rise but that likely won't be reflected in savings rates for a while yet.
    • Comms69
    • By Comms69 11th Oct 17, 10:59 AM
    • 1,230 Posts
    • 1,012 Thanks
    Comms69
    Why is everyone so negative?

    Did I come to the wrong place?

    Surplus income varies from month to month
    Originally posted by bhoy1976


    Because you aren't providing any information.


    If it's £5 a month you may aswell stick it on black every month down the casino.


    If it's £500 a month, find an isa and do £250 each


    If it's not a set amount, but a minimum, you could consider a decent current account (does Santander do 123 anymore?)
    • MERFE
    • By MERFE 11th Oct 17, 11:04 AM
    • 1,851 Posts
    • 5,852 Thanks
    MERFE
    Can't believe how negative everyone is. We are saving for our first home whilst also repaying debts with 3 expensive children. How fast are you looking to buy. We think we will have enough by 2019 for a 10% deposit plus fees but we moved from the South East mostly due to insane house prices so I don't think moving somewhere cheaper is a terrible idea. I use several regular savers to get reasonable interest rates but then we only have so much spare each month. Looking on the savings board for advice on the best rates and accounts is probably a good idea.
    • bhoy1976
    • By bhoy1976 11th Oct 17, 11:08 AM
    • 60 Posts
    • 25 Thanks
    bhoy1976
    So everyone is being negative because I didn't provide full facts and figures in my thread opener, Comms69?

    Well that's a load of crap if ever I heard it.

    I started a dialogue and all I got was negative tripe about my life, expenditure etc.

    It's obvious a few people are being downright unhelpful and have jumped the gun in their replies.

    To make it clear, my surplus will be a few hundred per month with the possibility of a little extra here and there form time to time.

    When the Help to Buy deposits I've seen are as little as £5K, that doesn't seem unreasonable in my opinion.

    Moving out of the county isn't an option.

    My life and career is here.
    • bhoy1976
    • By bhoy1976 11th Oct 17, 11:13 AM
    • 60 Posts
    • 25 Thanks
    bhoy1976
    Can't believe how negative everyone is. We are saving for our first home whilst also repaying debts with 3 expensive children. How fast are you looking to buy. We think we will have enough by 2019 for a 10% deposit plus fees but we moved from the South East mostly due to insane house prices so I don't think moving somewhere cheaper is a terrible idea. I use several regular savers to get reasonable interest rates but then we only have so much spare each month. Looking on the savings board for advice on the best rates and accounts is probably a good idea.
    Originally posted by MERFE
    It's unreal isn't it?

    Some folk obviously got out of the wrong side of the bed this morning.

    Apparently I came to the wrong place for advice.

    Having come from debt failure to the other side perhaps I have a little bit more faith in achievement than others.

    Sounds like you are in a similar position to me MERFE.

    We live in the south east and I can't move right now because of my career.

    We will likely remain here for the rest of our lives, unless we move to my wife's home country in later years, but that isn't to say we couldn't move within the UK in the future.
    • Comms69
    • By Comms69 11th Oct 17, 11:15 AM
    • 1,230 Posts
    • 1,012 Thanks
    Comms69
    So everyone is being negative because I didn't provide full facts and figures in my thread opener, Comms69? - Well your initial post did seem a bit ranty

    Well that's a load of crap if ever I heard it. - ok then, my mistake

    I started a dialogue and all I got was negative tripe about my life, expenditure etc. - where?

    It's obvious a few people are being downright unhelpful and have jumped the gun in their replies.

    To make it clear, my surplus will be a few hundred per month with the possibility of a little extra here and there form time to time. - Right so, the interest wont be worth much. May aswell just pick an account with your current bank

    When the Help to Buy deposits I've seen are as little as £5K, that doesn't seem unreasonable in my opinion. - It's typically 5% I believe, so is the house you want 100k?

    Moving out of the county isn't an option.

    My life and career is here.
    Originally posted by bhoy1976


    Right, so you will be saving for how many months?
    • bhoy1976
    • By bhoy1976 11th Oct 17, 11:22 AM
    • 60 Posts
    • 25 Thanks
    bhoy1976
    Right, so you will be saving for how many months?
    Originally posted by Comms69
    I'm struggling to see what part of my original post was ranty so please point out it out to me?

    The example properties on the Help to Buy website offer smaller percentages for shared ownership so whilst the full market value might be £400K, some shares are about a quarter so yes the mortgage amount could be around £100K thus £5K deposit.

    We'll be saving for the minimum of a year so saving for this is achievable given my limited knowledge
    • steampowered
    • By steampowered 11th Oct 17, 11:26 AM
    • 1,948 Posts
    • 1,823 Thanks
    steampowered
    I always think it is a good idea to set up a direct debit to move money from your current account to a savings account on payday.

    Whatever is left in the current account is there to spend.

    This forces you to save a consistent amount each month. It is very easy to spend money if you leave it sitting in your current account.

    You should also put your expenditure into a calculator - there is one on MSE. Take an honest look at everything you spend, and try to assess whether there are any opportunities for making savings.
    • saajan_12
    • By saajan_12 11th Oct 17, 11:31 AM
    • 996 Posts
    • 672 Thanks
    saajan_12
    House prices are very high where we live so Help to Buy Shared Ownership appears to be the only realistic option.
    So, how do we get that deposit? We can't move in with our parents, have any inheritance or the like so it will just be save, save, save.
    Originally posted by bhoy1976
    How is this a dilemma? House prices are what they are, if you can't afford one then continue renting or save up. You gave the answer in your OP so there isn't really anything constructive we can add

    We're looking to save for a deposit. We just wanted to know where would be best to put that money for interests sake.
    Originally posted by bhoy1976
    Ahh you didn't say that. This board is about house buying issues, your question is really about savings and investments and would be better suited on that board.

    Why is everyone so negative?- they're not, they're just baffled about a non-question.

    Did I come to the wrong place? - yes, if you're asking about ways to maximise savings, you should go to that board.

    Surplus income varies from month to month-
    there's no universal answer as to the best way/place to save, it depends on your situation. If you want help you need to be able to give specifics.
    Originally posted by bhoy1976
    • Comms69
    • By Comms69 11th Oct 17, 11:31 AM
    • 1,230 Posts
    • 1,012 Thanks
    Comms69
    I'm struggling to see what part of my original post was ranty so please point out it out to me? So, how do we get that deposit? We can't move in with our parents, have any inheritance or the like so it will just be save, save, save.

    The example properties on the Help to Buy website offer smaller percentages for shared ownership so whilst the full market value might be £400K, some shares are about a quarter so yes the mortgage amount could be around £100K thus £5K deposit. - But can you afford both the mortgage and the 'rent'?

    We'll be saving for the minimum of a year so saving for this is achievable given my limited knowledge
    Originally posted by bhoy1976


    £200x12 = £2400 though, that might just about cover mortgage and solicitor fees?
    • Rambosmum
    • By Rambosmum 11th Oct 17, 11:36 AM
    • 1,548 Posts
    • 2,011 Thanks
    Rambosmum

    To make it clear, my surplus will be a few hundred per month with the possibility of a little extra here and there form time to time.

    When the Help to Buy deposits I've seen are as little as £5K, that doesn't seem unreasonable in my opinion.

    Moving out of the county isn't an option.

    My life and career is here.
    Originally posted by bhoy1976

    People shouldn't be being negative.


    ISA is probably your best option.


    Have to talked to any shared equity schemes in your area to look at the full costs?
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