Savings Plan?

Stuckinarut

I am looking to set up some sort of savings plan. I want to consider buying a house in the next few years and want some kind of plan, that will give me the best return on my money, and preferably I can't access until a set time period has lapsed or something along those lines.

Can anyone give me advise on the best way to move forward?

Thanks

bendix

No offense, but given you've only managed to reduce your debt by £1700 in over two years, wouldn't a focus on debt reduction be wiser than a savings plan?

Stuckinarut

I dont want to save a fortune, I just want something that isn't easily accessed. I have payment plans in place to clear my debt, and should it still be outstanding when I was due to cash in on any savings then of course I would use the money to do that before i tried to get myself a mortgage.

opinions4u

I'd probably point you in the direction of a regular saver account.

www.moneyfacts.co.uk/savings will help identify one. Principality BS and Chorley BS have been flagged on here recently as good payers.

The post by Bendix raises a good point though. Your debt has dropped by just £400 over 11 months. Less the £40 a month.

Are you really in a position to save up the following?

10%-15% deposit.
£2500 for product, valuation and legal fees.
1% stamp duty.

dunstonh

How much interest are you paying on your debts?
How much interest will you be paid on the regular saver?

Stuckinarut

Although I am paying my debt off slowly, I still would like to have a little money behind me.

Stuckinarut

I am not paying any interest on my debts at the moment, I have an agreement with them all to to make monthly payments and they stopped the interest which I have always maintained my payments

dunstonh

harsh but I do think you need the realism.

Debt repayment structuring is a red flag for mortgage lenders. They will want to see a good number of years gone by since the debt was repaid. So, the longer you leave that the longer you will have to wait for that house.

However, building up the £25k-£40k needed to buy even the cheapest houses is also going to take time.

Saving up £30,000 over 5 years would cost you £475pm (@ 2% net interest). What sort of monthly savings figures were you looking at?

Stuckinarut

Maybe saying the next few years is a bit optomistic, I just mean I want to have some money behind me for when I have cleared my debt, and not come out the other side with still nothing behind me. Where I live the average deposit I would need would be approx £10k, so i'm looking at something long term to put my money away,

bendix

Stuckinarut wrote: »

Maybe saying the next few years is a bit optomistic, I just mean I want to have some money behind me for when I have cleared my debt, and not come out the other side with still nothing behind me. ,

Huh?

That is the weirdest logic I have ever heard.

If you are saving and repaying debt at the same time 'to have a sum of money behind you once you've cleared the debt', wouldn't repaying the debt first, then saving get you to exactly the same place at the same time, except your debt would have been gone for a few years, giving you a chance to get rid of a bad credit history?

Have you thought this through properly?