Newbie Alert- My situation

Cool-tom

Hi all, have been a reader of this forum for a while now, so it's time I grew up and started being more responsible with my money.

I'm 28 and currently rent, have done done for 3 years and managed to save zero pence!
Debt wise, I've in total about £9,000 to pay off, which I could do in a year. I've recently been promoted and now earn round £32,000 a year, this promoted me to start saving.
Currently bank with First Direct and have £600 in their regular savers account (2 months worth) which is at 8% for a year (plan is to save the max 3600 in this account), my plan is to save for a deposit. I'm able to save around 400 a month currently, and when debt is lower, closer to 700. Looking at myself and girlfriends salary, we could borrow between 110,000 and 130,000 which is the price of property we have been looking at. We will be first time buyers.

Questions are, after that year of saving in the First Direct account, where should I put my money? A normal savings account?
AND- apart from pay of my debt, which Im well on top off, and save for a deposit, can I be doing anything else with my money? Is it really as simple as put as much as you can into a savings account until we have reached the 20% deposit mark?

PLease as much advice as possible, really keen to make this happen, Ive never had the interest in owning a property, but I just woke up one morning and thought "I'd love a home" lol. Strange. Anyway, thanks

kingstreet

All I can suggest is you check out what the rates are when you need them in 12 months time.

Lovelyjoolz

Ditto what Kingstreet said. Interest rates offered on Mortgages change daily, so you've no idea where they will be in 12 months time.

But I will add, that if you're saving hard, aim for 25% desposit - that extra 5% really makes a difference to the amount of options you'll have open to you.

Top savings tip: Instead of working out how much you think you can afford to put away each month, work out how much you want to have saved next year. Then divide that into 12 and put that much away without fail. You have to be very strict with yourself if you want that house. If you cannot live on what is left, then the deposit you're aiming for is too high and you either need to lower your expectations of the house you'll buy, or save for a longer term. Think of it as practice for paying the mortgage, because you can't get out of paying that once you start!

Good luck!

MFSaver

Remember to consider ISAs.

CLAPTON

presumably you are paying more in interest on your debts than you are earning on your savings
so you may wish to consider paying off the debts asap and only saving once you have done that.

Cool-tom

Yeah I had considered clearing as much debit as possible, then allowing me to really up the amount I've saved after thEy are cleared.
I might lower the amount saved to round 300 a month but increase the amount thrown towards debt.
This a better idea than saving more and trying to clear those cards?