Save to buy

leereni

Just wondered if anyone had any ideas about the new save to buy savings accounts. I know it may seem the wrong section to post this thread, however they are designed for the mortgage market.

powerwin

I Googled "save to buy savings accounts" and found an article from the Independent which sums it up pretty well, i.e. fine to help you save but not the best savings rate out there.

Rgds

dimbo61

Read in the paper today that its taking on average 5 years to save up a depsoit for FTB so start saving in cash ISA,s and regular savers NOW

leereni

Yes, I'm trying to understand what exactly these save to buy accounts are. They appear to be an enticement for people to save with building societies who will make money from your savings and then from a future mortgage with them. In return they offer cashback.

They don't guarantee a mortgage after saving with them and therefore don't make much sense.

m00m00

the new nationwide 95% deal though, requires one of these accounts to access it

brian_723

95% ,the banks must be mad to lend to someone with 5% deposit .

leereni

What annoys me with these banks/building societies is they are not clear what their credit scoring rules are. Given there are plenty of people out there with adverse credit wouldn't it be better if they at least gave some clear guidelines.

m00m00

omcornwall wrote: »

What annoys me with these banks/building societies is they are not clear what their credit scoring rules are. Given there are plenty of people out there with adverse credit wouldn't it be better if they at least gave some clear guidelines.

that's what an experienced mortgage broker can do for you

leereni

Ok, well I've asked this question several times on this forum about my own circumstances.

I'm 32 years old. I've worked in the same job for the past 5 years. My salary is now £37000 plus overtime which normally comes to about £3000 - £4000 per year. I have little savings, however given my income and expenditure I am able to same £10000 in the next year. I have the following adverse credit history:

A default was recorded for £300 in 2006 (so by early next year this will be cleared from my file)
I was in arrears on a loan which was settled (2007)
I was in arrears in another loan up until about 18 months ago
For the past 18 months I have had only one late payment on a catalogue
I have a loan and credit card which combined I pay £300 per month for the past 18 months with no defaults.

Please let me know what you think my chances of getting a decent first time mortgage will be in about 12-18 months time given the above information.

m00m00

no one knows what the mortgage market will be like in 12-18 months time.

if you were to buy now you would definitely need to speak to a broker.
What kind of property value would you be looking at, as the over riding factor in all mortgage applications is generally LTV, and salary multipliers

leereni

I'm looking at a shared ownership deal. Eg. Total property price £200000. 40% share, therefore a mortgage of £80000.