Saving for a deposit - best way to go about it?

spiderdijon

Hi everyone,

I have managed to get myself into a position to save at least 1000k a month (debt free, promotion + moving back in with parents).

What I want to do with this money is save up for a mortgage.

Realistically I know that even with being able to save this much a month it will be a matter of years before I have enough for a deposit for a 'decent' house, so I want to save my money wisely...which brings me to my question.

Where should I save my money?

At the moment, I bank with Halifax & have done since I was old enough to have a bank account (am 23 now) so would it be best to stay with them? Or do another bank give 'better' mortgage deals to existing customers who have banked with them for a few years?

I know this is trying to predict the future a little bit but I'm trying to get myself in the best position possible for when I am ready to get a mortgage. I have been 'building up' my credit rating since I was 18 (taking out loans & credit cards that are paid off in full and on time, phone contract etc) so hopefully that will work to my advantage when the time eventually comes.

Thanks for your help

Thrugelmir

How much do you saved so far, what's your savings target, what's the timeframe before you purchase?

spiderdijon

I've got just under £3000 so far, I'm going to save as much as I can for 3 years & see what kind of position I'm in then.

I'm reluctant to set too many goals for myself yet, I don't feel I've researched house-buying enough to be realistic about what I can achieve.
All I know (from having a quick look around the mortgage boards) is that I'm going to need a lot of savings behind me when I do start looking for a home.

Simon11

I'd recomend Santander First Home saver account offering 5%:D Put up to £5,000 up front, then put in 100-300 everymonth to get 5%

I've got it and its one of the best accounts around if you qualify:j

Check out their website for more info!

VKay

Use the banking /saving bits of this site to check out the latest savings rates.
Open an ISA and a regular saver. Don't bother about being loyal to your bank- they won't be loyal to you. Shop around for a good rate and don't be afraid to chop and change if you have time as it is worth it. Rates often drop after introductory offers so don't rest on your laurels!

If you have any debt consider paying that off asap as it will be costing you more than you are earning in interst in most instances at the moment.

Good luck- for support look for the saving for a deposit thread on the housebuying forum.