Saving For a House

GemmaPowell

Hello,

Was wondering if anybody could give me some advise.
Me & my boyfriend are starting to save money each month to put towards a deposit for a mortgage, we are not really aware of savings accounts or ISA's, what sort of thing is best at the moment?

Thankyou

Loughton_Monkey

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

http://www.moneysavingexpert.com/savings/best-cash-isa

King_Of_Bling

GemmaPowell wrote: »

Hello,

Was wondering if anybody could give me some advise.
Me & my boyfriend are starting to save money each month to put towards a deposit for a mortgage, we are not really aware of savings accounts or ISA's, what sort of thing is best at the moment?

Thankyou

Are you both working and what sort of time frame are you looking at? Will it be six, twelve, eighteen months or more before you've saved enough and you'll need the money back out of the savings?

calypso_rhapsody

Not to mention http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

Remember whichever account or accounts you decide to go for that you should check interest rates regularly - check when the guaranteed rate is due to expire and be ready to act then to move your money to a better home. At present regular savings accounts are offering quite good rates (4%) but on limited amounts each month (typically £250 pm) and you will pay tax on the interest so the net rate is 3.2% if you are basic rate tax payers.

You could save each month into one or more of these and then when they expire move the funds into an ISA where you will earn interest at a lower rate but tax free ... up to the ISA limit of course (which you each have so £10,680 between you).

GemmaPowell

King_Of_Bling wrote: »

Are you both working and what sort of time frame are you looking at? Will it be six, twelve, eighteen months or more before you've saved enough and you'll need the money back out of the savings?

Well I am a student at the moment and he is in full time work. We have got £3000 at the moment and looking at putting £300-£400 in to savings per month. Well Im qualified in 12months

atush

If he is working i suspect he is paying tax. So I would put the cash into a cash ISA.

The 300/month could be put into either cahs savings or S&S isas or an investment trust savings plan. But as you haven't said when you think you will want to buy, it is hard to tell you where to put it as shares are for the longer term (ie 3 yrs +).

But if saving short term, you could put a small amt away in an investment trust savings plan as you would be under the CG allowance when you wnet to sell, and the drip feeding would help you avoid large losses that you could get with lump sums. This could give you some exposure to markets over a shrter term. I guess it all dpends on you and your attitude to risk.

If you are they type who can put 500 quid into shares, and be upset if it turns out to be worth only 400 after 6 months means that maybe shares aren't the best thing for you. but if you think you can stand a short term set back and keep plowing on saving, then a s&S isa or IT savings plan could be for you.

kidmugsy

As long as you are happy to keep it for at least one year, an Index-Linked Savings Certificate from ns&i for the £3k. Put the monthly cash into, if you live near a branch

Regular Savings Cash ISAs:


Nottingham BS Starter (Regular Saver) ISA - 5.00%
Minimum operating deposit: £10. Min - Max monthly deposit: £10 - £445.
Notes: Transfers in not accepted. No withdrawals permitted and payments can be missed without penalty. This ISA is Branch based.

Oh, there's also a Santander non-ISA account that pays 5%p.a. for regular savings intended for house-buying that might do if you don't live near a BS branch. The nontaxpayer should open it, and complete an R85 form.