advice welcome

jake2010

Hi everyone

I have been saving for the last years to get a deposit for a mortgage, ended up with £27k, went to see an adviser but have had no joy

so it another year or so of renting and trying to save,
so my question is what to do with it?

I have been looking at putting some in a ISA and some in to premium bonds.

What would you do in this situation?

Thanks for your input

Onawingandaprayer

Depressing that you couldn't get mortgage with £27k deposit. How much (roughly) were you looking to borrow?

Onawingandaprayer

PS. Forget Premium Bonds!

stqueen

Onawingandaprayer wrote: »

Depressing that you couldn't get mortgage with £27k deposit. How much (roughly) were you looking to borrow?

Quite! I too would be interested to know how much you were looking to borrow - £27k to me seems like a very healthy deposit figure! :eek: I know friends who have managed to secure a mortgage recently with a lot less than this, perhaps my target of £30k deposit is too low?

dunstonh

£27k deposit could be fine but it depends on the property. Deposits need to be at least 10% of the value. However, you have factor in income. If the income is insufficient to meet the borrowing needed then you need to save more to make up the difference.

As above, forget premium bonds unless your idea of a good return is buying lottery tickets.

jamesd

That amount of deposit should be enough for a place costing £100,000 or more with 25% deposit, depending on how high your income is. Quite possibly a fair bit more from some lenders or with lower deposit levels. Plenty to buy a flat or even house in many parts of the country, not enough in other parts like London. Don't go for a dream home as a first purchase is probably good advice - something sufficient will get the rent money working for you instead of someone else. We don't know what sort of place you're after or why or in what part of the country or your income and debt levels and hence affordability so it's really hard to make more substantive comments.

atush

Fill your cash ISA. Forget premium bonds and put the rest into a fixed rate bond.

jake2010

Onawingandaprayer wrote: »

Depressing that you couldn't get mortgage with £27k deposit. How much (roughly) were you looking to borrow?

The house prices are crazy here, looking for a good size 2bed flat or house at £200k plus

but they were only willing to lend me £100, so i could get a bed sit not quite big enough for me my partner and our two kids.

jake2010

stqueen wrote: »

Quite! I too would be interested to know how much you were looking to borrow - £27k to me seems like a very healthy deposit figure! :eek: I know friends who have managed to secure a mortgage recently with a lot less than this, perhaps my target of £30k deposit is too low?

I was told that i would need at least 15% £30k + stamp duty, solicitor fees & surveyor etc...

jake2010

jamesd wrote: »

That amount of deposit should be enough for a place costing £100,000 or more with 25% deposit, depending on how high your income is. Quite possibly a fair bit more from some lenders or with lower deposit levels. Plenty to buy a flat or even house in many parts of the country, not enough in other parts like London. Don't go for a dream home as a first purchase is probably good advice - something sufficient will get the rent money working for you instead of someone else. We don't know what sort of place you're after or why or in what part of the country or your income and debt levels and hence affordability so it's really hard to make more substantive comments.

the house prices on the south coast are a more than 100,000 down here. my earnings are £20k PA my partner is on maternity at the moment so has dropped our household income down a bit. we are dept free, apart from a few ££ on our CC but nothing much.
so the advice they gave me is to bring my saving up to the £35k so am looking to put my money somewhere for 12months to get good rates plus to be able to add each month.

jake2010

atush wrote: »

Fill your cash ISA. Forget premium bonds and put the rest into a fixed rate bond.

Thanks a bit of advice

next question who are good for ISA & Premium bonds?
I have been looking at a few and the most you can put in as around 2-3k but the premium bonds look like a good bet, i will have to look in to them a bit more, they have a better AER.