Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • 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 2
    • 00ec25
    • By 00ec25 11th Oct 17, 11:54 AM
    • 5,577 Posts
    • 4,979 Thanks
    00ec25
    People shouldn't be being negative. no people should be unrealisitic and encourage others to buy buy buy when they have no idea about the personal circumstances of a person except that the person has declared their "only" realistic option is shared ownership which of course is fraught with problems for the unwary. Also "we" should encourage someone to buy whose finances imply it may be a big struggle for them at a time when interest rates will rise and house prices could (I am not saying will) fall leaving them with a capital loss and a shared ownership property that is harder to sell than a "normal" property

    this is not Mum's net, a dose of "moral input" can save someone from a course of action that may not be suitable if re-considered


    ISA is probably your best option.

    Have to talked to any shared equity schemes in your area to look at the full costs?
    Originally posted by Rambosmum
    OP has now provided some realistic context. The aim appears to be a save 5k in a 12 month period

    given that modest target the question of where to save is answered in one place only: a HTB shared ownership ISA is the "best" option given the 25% "free money" boost
    Any interest earned on a "normal" savings product is meaningless given the low interest rates on all such other savings accounts and the 1 year timescale

    https://www.helptobuy.gov.uk/help-to-buy-isa/who-is-eligible/

    https://www.helptobuy.gov.uk/shared-ownership/
    Last edited by 00ec25; 11-10-2017 at 12:00 PM.
    • Pixie5740
    • By Pixie5740 11th Oct 17, 11:56 AM
    • 11,202 Posts
    • 15,655 Thanks
    Pixie5740
    There’s a whole section of the forum dedicated to Savings & Investments which is really what you want to know about at the point in time. As your partner is under 40 (s)he should look at opening a LISA to get the government bonus.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Rambosmum
    • By Rambosmum 11th Oct 17, 11:58 AM
    • 1,552 Posts
    • 2,013 Thanks
    Rambosmum
    OP has now provided some realistic context. The aim appears to be a save 5k in a 12 month period

    given that modest target the question of where to save is answered in one place only: a HTB ISA is the "best" option given the 25% "free money" boost
    Any interest earned on a "normal" savings product is meaningless given the low interest rates on all such other savings accounts and the 1 year timescale
    Originally posted by 00ec25

    Have you been on mumsnet? They're a nest of vipers. I think you meant netmums. They're the handholding huns.


    People could be realistic with the OP and help him explore the options without being so negative!
    • bhoy1976
    • By bhoy1976 11th Oct 17, 12:03 PM
    • 60 Posts
    • 25 Thanks
    bhoy1976
    Well this HAS been an experience.

    Be it on the wrong thread, not disclosing full details or simply asking tge wrong question I'll be off now.

    Thanks for the advice.
    • LdnFtB
    • By LdnFtB 11th Oct 17, 1:23 PM
    • 93 Posts
    • 94 Thanks
    LdnFtB
    Don't be too hasty!

    Number one question with an investment strategy is what's your timeframe and number two is what's your attitude to risk. You do need to provide that information so that people can help you.

    It seems that you have a very short timeframe (1 year) and because of that number two is irrelevant - you simply can't afford to loose anything in such a short space of time as you have no margins to rebuild your capital. This rules out equities such as stocks and shares.

    As such anything other than cash is not a good option. Interest rates are at an all time low so don't expect any returns. However the government runs two schemes - the Help to Buy ISA, and the Lifetime ISA - which will match 25% of your contributions provided you meet certain criteria.

    Lots of Banks & BS offer both types of cash ISAs. Lifetime ISA allows for higher amounts to be paid in each month than the Help to Buy ISA, so I'd look into one of those.
    • societys child
    • By societys child 11th Oct 17, 1:38 PM
    • 4,895 Posts
    • 5,345 Thanks
    societys child
    Just need to choose the correct option of where to save for it to get the best interest.
    How on earth you expected answers when you didn't include the question in your first post is beyond me, and as already pointed out, this is the wrong forum . .
    Last edited by societys child; 11-10-2017 at 1:40 PM.

Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

374Posts Today

1,649Users online

Martin's Twitter
  • RT @bearface83: @MartinSLewis check out the @Missguided new 60% off offer. Upping the cost of items almost double to make us think it?s a?

  • RT @efitzpat: Thank you SO SO much @MartinSLewis for your Student Loans refund advice! I just got a grand refunded right before Xmas! Whoop?

  • Have a lovely weekend folks. Don't do anything (fiscally) that I wouldn't do!

  • Follow Martin