Short Term Saving for Mortgage Options

TheGirlLovesToSave

Kidmugsy thank you. In the space of less than 1 day everyone who has contributed has helped me clear up the 'fuzzy' and often quite boring world of savings. Going to the bank to sort out my finances tomorrow.

Eco_Miser

I'd agree with a 1 year (or 18 month) fixed rate ISA, and NS&I index-linked certs for your lump sum, and a regular saver or two for your monthly savings.

In the first 6 months or so, you could put your monthly savings into a 1 year fixed interest account (a new one each time, unfortunately, as that's how they work, but they can be with the same institution). At the end of each fixed term, you'll need to find a new home for the money, possibly your 2012 ISA, otherwise the best short term account you can find.

Have an instant access saver for any spare money, such as set aside to pay quarterly or ad hoc bills, and any money left over at the end of the month, don't keep excess money in your current account (unless it is Lloyds Vantage or similar which pays a good rate of interest).

TheGirlLovesToSave wrote: »

Rent/Living Arrangements -
£900pcm, currently living on my own.
*£650pcm if move into shared house which I am planning to do by August.

= SAVING £300pcm

Sorry, £900 - £650 is only £250

TheGirlLovesToSave wrote: »

Mobile -
£15pcm, since did not upgrade last year.
*Don't think I can beat this deal at all but welcome any suggestions although due an upgrade in about a month.

Depends how much you use it, do you need an upgrade?

TheGirlLovesToSave wrote: »

Food -
£200pcm, vegetarian and make myself lunch most days in the week plus rarely eat out. Shop in lower end Supermarket.
*Again don't think I can beat this deal at all but welcome any suggestions.

I recently gave my food spending as £40 pcm in another thread here, and I think that's an overestimate. Have you tried Martin's Downshift Challenge?

TheGirlLovesToSave wrote: »

Drink -
£50pcm, don't really drink socially that much

I hope you're not drinking unsocially:beer: That's £50 you could be saving.

TheGirlLovesToSave wrote: »

Leisure/Hobbies -
None although really keen to join a gym. Currently run around my local area.

What advantage would you get from a gym that's worth delaying buying your own house? Especially since you'll be cycling to work.

TheGirlLovesToSave wrote: »

Fashion/Beauty -
£300pcm, majority of this is hair care as have very weak/dry hair that needs A LOT of TLC
*£250, will stop shopping frivolously each month

=SAVING £50

I suggest you read the Old Style MoneySaving board for inexpensive hair care and beauty products, and look through the Debt-Free Wannabe board for tips on really cutting your spending. There's no need to post.

TheGirlLovesToSave wrote: »

My plan is to try and save as much as I possibly can over the next year/year and a half to build up a deposit and get on the housing ladder.

An excellent aim. To save as much as you can, you must spend as little as you can, and it's amazing how little you need to spend if you have sufficient incentive.

TheGirlLovesToSave

Thanks eco-miser. Yes, a little ropey with my calculations! You are right though, as things stand shaving off things here and there is well worth the final outcome so will be trying a lot harder with my savings.