Getting on the property ladder ASAP!

aceatch

Hi guys,

Currently, I've been quite determined to get out of renting and onto the property ladder.

I've been in my graduate job for about a year and have save a little over £2,000 in the past couple of months.

Let me start of by saying that I've been through multiple threads about Nationwide's Save to Buy accounts, but I'm still pretty interested in the scheme. If you don't already know, you have to save at least £50 into the account for a minimum of 6 months and you will be eligible for a 95% mortgage.

This is my Plan:-

I can save a minimum of £650 (more if I can get overtime) a month into this account and a cash ISA (at 3.02%).

So in 6 months time I can save roughly £6,000 to pay for the deposit which would be ideal assuming I can get the 95% mortgage. Part of my plan is to also nag my parent to pay furniture and fees :P

I am thinking of buying a reasonable 1 bed house/flat in my area for around £100,000 as it is only myself buying.

I am pretty undecided on what my best option is. To open a Save to Buy account and concentrate on that or continue to save for a 90% LTV mortgage? The interest rate for a 95% LTV is 5.74% which I don't think is too bad isn't it?

If you guys think that I should continue to save, well the longer I save the more I have to pay in rent which would offset the savings in a better interest rate... Swings and roundabouts as they say!

lovewealthhappiness

I don't know about the interest rate being good or not, but one thing I will say is that I think the save to buy account gives you a £1000 bonus if you save £10,000 or more (and then take out a STB mortgage), so if you do open STB then try and get it to 10k and then your fees are paid for you!