First time buyer in 3 years. am I taking the right steps?

connormill

So, I'm thinking of buying a house in 3 years time when my Sare Save scheme with my employer (BSkyB) pays out. expected about £10-15k return. Also saving money in an ISA but thinking of moving it to a fixed term bond so I wont touch it before the 3 years is up.

My question is, can I do anything more to improve my chances of getting a mortgage and getting on the property ladder. I'm 19 and have a decent job, 3 credit cards which I pay off in full every month and various other financial commitments which get payed off on time also.

I want to make my credit history look as attractive as possible so when I do have to apply for a mortgage I have the best chances.

Looking at a property in the 90-120k range, at current market value of course.

So if anyone has any tips it would be much appreciated

MFSaver

You seem to already be doing the right things. Would it be possible for you to save more from your monthly wages? It might be a tough three years, but you will be smiling in three years' time when you have that big fat deposit fund sitting in front of you.

dshart

I think you are already taking the right steps, just make sure you do not default on any payments even for silly reasons like forgetting to pay. From my experience it appears the more credit you have and show that you are responsible with it the more credit worthy you become, so use your credit cards, but make sure you always clear the balance.

One point I would raise is changing from an ISA to a fixed term bond, you need to check which will actually be better. An ISA has tax advantages. Remember if it is only a fear of taking the money out of the ISA for an impulse buy, there are ISA's that you can restrict access to similar to fixed term bonds.

Good luck in your saving.

connormill

dshart wrote: »

I think you are already taking the right steps, just make sure you do not default on any payments even for silly reasons like forgetting to pay. From my experience it appears the more credit you have and show that you are responsible with it the more credit worthy you become, so use your credit cards, but make sure you always clear the balance.

One point I would raise is changing from an ISA to a fixed term bond, you need to check which will actually be better. An ISA has tax advantages. Remember if it is only a fear of taking the money out of the ISA for an impulse buy, there are ISA's that you can restrict access to similar to fixed term bonds.

Good luck in your saving.

Well I have set up all CC's to be paid in full with Direct Debit, all set up to leave my account a day or two after I get paid every month.

I looked into a fixed term bond with my bank (Lloyds TSB) but they dont allow and additional deposits after the account is open. I have a Standing Order set up to pay £500 into the ISA after every pay day.

So I would like to open an account where I can pay in by standing order but can't take it out and also get a nice intrest rate.

Anyone know of any?

jamieps

You could try the Santander First Home Saver, initial deposit can be up to £5,000 and you have to save between £100 and £300 per month, interest rate is 5% gross.

No withdrawals are allowed and you have to agree to a 'mortgage interview' when you close the account, but there's no obligation to take out a Santander mortgage.

It's not available online - you'll need to go to a branch to open it - but they do send good old fashioned paper statements every quarter.

Hope this helps...