Savings - How much to use for deposit?

Tom2001

Thanks all.

It has probably taken me about 10 years to save up that amount. I'm now on a good salary of ~£50k. I currently rent in a shared house, hence I've been able to save more by splitting costs.
The last few years I've been consistently able to save about £15k per year, still allowing for a good holiday a year and going out with friends with family when I please. I know I could push and save more, but I want a life too!, and I've been happy with what I'm saving.

I'm late 30's, and I do think a 3 bed freehold would be the way to go. Initially I was worried about what I would do with all that space, but as I'm that bit older I see this as buying a permanent home for the future. I'm not in a desparate hurry to buy and am prepared to wait a bit longer if I have to and save some more.
As someone said, I'm used to the luxury of having money in the bank and it does scare me spending the bulk of it nad leaving little. In reality though, I don't need see I'll access to the capital, and I've been through MSE budget planner quite meticulously putting in what I think are sensible values for the extra expenditure I'll be faced with when owning a home. I still think based on a £120k mortgage I could save about £4-5K per year. The only major thing I may need to buy in a few years would be a newer car, but I would have hope to have saved the extra money to pay for that by then.

BitterAndTwisted

If you've been able to save £15k per annum plus have a holiday and a social-life then you truly are in clover. If that job of yours is secure you are going to have a very happy time of home-ownership. In your position I would be taking a while to do my research and find the best area I could afford, even if it meant a slightly not-best property where I'd be happy long-term. £15k a year in savings buys a lot of refurbing and whatnot to make it perfect for you.

fannyanna

Tom2001 wrote: »

Thanks all.

It has probably taken me about 10 years to save up that amount. I'm now on a good salary of ~£50k. I currently rent in a shared house, hence I've been able to save more by splitting costs.
The last few years I've been consistently able to save about £15k per year, still allowing for a good holiday a year and going out with friends with family when I please. I know I could push and save more, but I want a life too!, and I've been happy with what I'm saving.

I'm late 30's, and I do think a 3 bed freehold would be the way to go. Initially I was worried about what I would do with all that space, but as I'm that bit older I see this as buying a permanent home for the future. I'm not in a desparate hurry to buy and am prepared to wait a bit longer if I have to and save some more.
As someone said, I'm used to the luxury of having money in the bank and it does scare me spending the bulk of it nad leaving little. In reality though, I don't need see I'll access to the capital, and I've been through MSE budget planner quite meticulously putting in what I think are sensible values for the extra expenditure I'll be faced with when owning a home. I still think based on a £120k mortgage I could save about £4-5K per year. The only major thing I may need to buy in a few years would be a newer car, but I would have hope to have saved the extra money to pay for that by then.

Are you single?

I'm married but could get rid of him!

Only joking

You do sound like a very sensible guy though. Well done for getting yourself into this great position.

BitterAndTwisted

Great minds think alike fannyanna. I'm looking for someone about that age. Savings and a home-owner would be a bonus.

AdmiralX

Tom2001 wrote: »

I know I could push and save more, but I want a life too!, and I've been happy with what I'm saving.

I'm late 30's, and I do think a 3 bed freehold would be the way to go. Initially I was worried about what I would do with all that space, but as As someone said, I'm used to the luxury of having money in the bank and it does scare me spending the bulk of it nad leaving little. In reality though, I don't need see I'll access to the capital, and I

A 3 bed house has loads of costs maintenance and repairs which you cannot predict. You can buy a 2 bed cottage which is economical to run. London SE has opportunities. You can find a conservation area flat which keeps its value and may be able to hold on to some savings.

shegar

Well as I said in a previous post good luck in finding your new home, id say youve got your head screwed on the right way , only trouble when you have a lot saved , you just dont want to touch it.................Youve proved to yourself that you can pay rent and household bills, have holidays , and still save....What a lovely position to be in......

AdmiralX

There are 2 attitudes to home buying; the first says, "whatever will be will be the future not ours to see". Quite right. To this extent, to be honest I have seen surveyors who have not picked subsidence - not a joke. Or those who have picked problems that did not exist. Buyers who bought not knowing there was a report on subsidence and underpinning etc etc... Plans which do not match the deeds... We bought a flat not knowing we had a very bad lease but a huge private garden, we discovered the garden after we moved in... I know it is absurd, but the solicitor did not discuss the variation document... and we did not happen to ever ask and believed the garden was communal - but was ours.

The other attitude is "we know at this date what we buy, but do not know what the future holds, neighbours, job, disputes etc" some deeds are perfect but when it comes to enforcement there is nobody there. so it comes round to the first principle "whatever will be will be" .

BitterAndTwisted

NO flat. Absolutely no flat. Service-charges only ever go in one direction and in some buildings the leaseholders don't have a lot of choice about how much is spent and on what. Every year that passes the lease is getting shorter and the cost of extending gets higher. No flat.

Tom2001

Thanks all once again. Given me plenty to think about and helped to focus the mind.

Very interested in the offset mortgage, not really considered this before, but it seems a good way to make savings work help paying off the mortgage, but still have access to them if need be.

Some I've looked at seem to say they are interest only, but I guess I'd be free to pay the extra as I would in a repayment to be constantly paying off the capital?
Would I be tied to an offset mortgage and the same provider for the whole length of the mortgage, or could I switch to an ordinary repayment at a later date, if I wanted to?

fannyanna wrote: »

Are you single?
I'm married but could get rid of him!

BitterAndTwisted wrote: »

Great minds think alike fannyanna. I'm looking for someone about that age. Savings and a home-owner would be a bonus.

LOL! Sorry ladies, I'm not single!

BitterAndTwisted

DANG! I'd got my hopes up