How much to save for deposit?

catieeb06

Hi there,

My OH starts work on Monday (thank god for that!) Anyway, we calculated all the bills and food today and his wages and mine and we have found out we will have near enough £1250 spare a month, once my CC is paid off where it will add a further £100 a month to the spare funds.

We are looking at buying a property in the next 6-12 months. Only around £70-80k and I know about deposits and fee's and things. I already have £3,800 saved up which my mum has hold of.

So how much do people reckon we should save per month? I want to save as much as possible whilst not leaving us short week to week by saving too much.

Thanks.

Catie x

Yorkie1

I reckon that £250 per month could well be enough for spending money, food etc so ticked £1000. You want to have as big a deposit as possible, plus the expense of moving / furnishing, whilst also leaving some spare cash in savings for the proverbial rainy day, boiler failure, replacement car, involuntary time off work.

Manual_Reversion

Say £80k purchase price. You'll need 15% deposit for a half sensible mortgage rate:

15% of £80k = £12k deposit.

No stamp duty at this price, say £1k for solicitors and £1k for survey (conservative):

£12k + £1k + £1k = £14k cash required for purchase.

You have £3800, go on then let's call it £4000 (given the above conservatism):

£14k - £4k = £10k to save.

Saving £1k per month means 10 months from now to purchase.

In 10 months I think there is a better than even chance that your £80k place will be £70k or less.

Cash is king right now; best of luck. That's why I voted £1k.

Kind regards.

catieeb06

Thanks guys, any others?

X

Swipe

Save as much as you can and then after purchase throw as much as you can afford on over payments and you'll have that place paid off in no time. Then you can think about spending money on the place once paid off.

mynameisdave

Voted £1200 - if you can spare £1200 a month within a budget why spend more than you need to? If you're going to do it do it properly. And if some months you only manage to save £900 then its still better than aiming to save £800 and falling short. It also gives you spare cash for any mishaps in the next 12 months - car trouble for instance.

A biger deposit = wider range of mortgage products availabled and any savings you have left after purchase, fees, moving costs etc you can treat yourself with.

HOWMUCH

Save as much as you can and then buy before the stamp duty starts again perhaps a larger property that you can grow into which will be better in the long run.

Zelie

Save as much as you can now. It will pay off in the long run. If you find yourself a bit short one month then it's no problem because you have plenty of savings.

Thermidor

I agree with what other people say - save as much as you can.

And very good luck for your future!

Doctor_Gloom

Thermidor wrote: »

I agree with what other people say - save as much as you can.

And very good luck for your future!

I agree with you too.
P.S. how's pickledpink doing?

catieeb06

Cheers guys.

I think we aim for around £1000 a month, that way we have some to spend/enjoy life with.

Anything left over can then always be chucked on top

Thanks!