Saving heavily for mortgage - short term

flippyflaps

Hi,

Me and my wife are looking to save heavily for our first mortgage. We are looking to save around around 10,000 within 6-9 months, and then use this money for the mortgage deposit.

• Which savings account(s) should we go for?
• Is there any point in getting a decent interest rate as we will be using the money before the 12 month period?
• Is there an account which will give us interest monthly?

Thanks very much
Flaps

Blah99

Pick any decent savings account with instant access. Bear in mind that you're saving this money for a sepcific reason - a house purchase. Inflation doesn't matter to you, and as long as house prices keep going down the interest rate on the account is slightly irrelevant too due to the short period you're saving this money for. You're not trying to keep pace with house price inflation whilst building your deposit because the two are going in opposite directions.

I'd suggest you just get an instant access account with between 2% and 4% interest, and forget about it. The bigger challenge will be finding a house you want to buy

flippyflaps

Thank you Blah

Robert_Sterling_3

flippyflaps wrote: »

Hi,

• Is there an account which will give us interest monthly?

Why would you want interest monthly whilst at the same time you would be saving monthly?
Why not let the interest accumlate but pay a little less in?

flippyflaps

Robert_Sterling wrote: »

Why would you want interest monthly whilst at the same time you would be saving monthly?
Why not let the interest accumlate but pay a little less in?

Hi Robert, you've lost me...

nicko33

Robert_Sterling wrote: »

Why would you want interest monthly whilst at the same time you would be saving monthly?
Why not let the interest accumlate but pay a little less in?

presumably, if they might need the money before the first anniversary of opening the account, they don't want to have to wait until the end of the 12 months for access to the interest (although you could get it by closing the account)

hyposmurf

Can you wait any longer?Maybe over a year,that way you could save more and get a better rate.

ragingbass

Having the interest paid monthly won't really make much of a difference in terms of what you'll get back, but I'm sure the ICICI instant access account pays monthly

flippyflaps

waiting a bit longer is a possibility. there is no rush. living with the mother in law though!

Blah99

flippyflaps wrote: »

waiting a bit longer is a possibility. there is no rush. living with the mother in law though!

I'll just repeat my point above and stress how nobody knows where the bottom of the housing market is. I'm guessing we'll see it in the next 6 to 12 months - a slow stabilisation of the falls, followed by a plateau. You do not want your cash to be tied into any kind of termed product, because you just don't know when you'll need it.

Remember the other side of the equation - it's all very well spotting the bottom of the housing market correctly, but you still need to find a house you actually want to buy and live in. The latter is probably just as hard as the former

flippyflaps

Cheers for the help everyone