Best account to save for mortage deposit?

chris973

Hi, some advice would be really appreciated here

My partner and I presently rent a cottage. We have been told by the owner that she will wish to sell in approximately a year's time. She has said that we will get first refusal as she is keen to sell to us, so much so that if required, she will give us a few months extra if we need it.

We have started doing all the overtime shifts we can and guss that we will be able to put away around about £1200 per month into savings for a deposit. Some months it will be considerably more than this.

Can anyone give us an idea of the best bank and account to use for these savings? Obviously we need to be thinking of using a bank that not only gives a good interest rate, but also is most likely to actually give us a mortgage at the end of it all!

At present we have a joint account at Abbey but are not averse to changing banks!

Thanks guys:rolleyes:

herbertthehelper

chris973 wrote: »

Hi, some advice would be really appreciated here

My partner and I presently rent a cottage. We have been told by the owner that she will wish to sell in approximately a year's time. She has said that we will get first refusal as she is keen to sell to us, so much so that if required, she will give us a few months extra if we need it.

We have started doing all the overtime shifts we can and guss that we will be able to put away around about £1200 per month into savingsfor a deposit. Some months it will be considerably more than this.

Can anyone give us an idea of the best bank and account to use for these savings? Obviously we need to be thinking of using a bank that not only gives a good interest rate, but also is most likely to actually give us a mortgage at the end of it all!

At present we have a joint account at Abbey but are not averse to changing banks!

Thanks guys:rolleyes:

Speak to your bank - perhaps use a bank where you have to put a minumum in each month then offer higher interest rates! Im many ways as you are putting 1200 in a month already you should be hot property for the banks !

Rugbylass_3

I would consider having a savings account with the mortgage company you hope to get a mortgage with. Some 95% mortgages are available with certain banks/BSs as long as you are already a saver with them.

shop-to-drop

No advice, just want to wish you all the luck in the world. hope it happens for you. Save, Save save! Let us know how you are getting along.

chris973

Thanks for the advice and good wishes! I'll certainly let you know how we go, it's a lovely little cottage in the woods and should go at a bargain price.
Think it might be a plan to open a savings account with our present bank, Abbey as I think at the moment they are already offering 90% mortgages for existing customers. Hopefully, that will only get better.

FIngers and Toes crossed! Thanks again

shop-to-drop

chris973 wrote: »

Thanks for the advice and good wishes! I'll certainly let you know how we go, it's a lovely little cottage in the woods and should go at a bargain price.
Think it might be a plan to open a savings account with our present bank, Abbey as I think at the moment they are already offering 90% mortgages for existing customers. Hopefully, that will only get better.

FIngers and Toes crossed! Thanks again

We rented a cottage in the woods when we were a young family and we loved it. Sadly no chance of buying and we outgrew it anyway. But very fond memories. Your post reminded me of that. Look forward to hearing how you get on.

penguine

I would go with whatever bank offers the best interest rates and be sure to keep an eye out for new accounts being offered -- move your money around as often as necessary to get the best interest rate. If you're putting away a regular amount each month then look at regular savings accounts as these can offer a better rate than others (just be sure not to miss any monthly deposits as the interest rate usually drops if you do).

Thrugelmir

Try local building societies to where you are intending to buy. They may have a regular saving scheme which would assist you as a FTB to obtain a high LTV.

gemstars

I would say find the best possible rate rather than focusing on saving with the bank you might get your mortgage with. I don't think having a previous banking hisotry with that bank counts so much as a good credit report, decent deposit etc.

Thrugelmir

gemstars wrote: »

I would say find the best possible rate rather than focusing on saving with the bank you might get your mortgage with. I don't think having a previous banking hisotry with that bank counts so much as a good credit report, decent deposit etc.

As an example. Stroud and Swindon BS will now only open savings accounts for people in the their locality. They are reverting back to the way building societies used to work. For the benefit of the local community.

Regular saving demonstates an ability to manage ones money.