Best place to save for a mortgage from scratch

tombooth

I currently have a co-op basic account so will look into what co-op offer with regards to savings accounts and if I would be able to get one

Sanne

tombooth wrote: »

Thanks Sanne, I missed your post whilst writing this one! Does this site (or any other) offer comparisons for savings accounts? When comparing them do I need to look solely at the interest rate or are there other considerations (aside from the T&Cs)?

Hi Tombooth,

MSE has a comparison site for regular savings accounts here http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

The "open to all" section is the one you'll want to look at.

Building societies are probably your best bet, they can often only be opened in branch so check on the above site what's near you.

A lot of banks have regular savers that require current accounts but other price comparison sites may have longer lists with lower interest paying accounts that don't - just search the internet for regular savings accounts.

When comparing them, I would check for

• interest rate
• minimum payments each month
• maximum payments each month (though you should be fine with £100)
• if you can miss payments (and what happens if you do)
• if you can take money out (and what happens if you do)
• if the payments always have to be made on the same day each month or if it's just within a calendar month
• how you can pay the money in
• what happens after the first year - often these accounts revert to lower interest rates so you sould move your money then if there's a better option

I've got one with the YBS where payments can be made in person, at any day of a calendar month. One withdrawal in the 12 months period is allowed, if more are made the interest reverts to 1% (instead of 3% - mine is an older issue though). Payments are flexible each month, i.e. you don't always have to pay in the same amount.

Some others I've got with banks are much more restricted.

Hope this helps!

tombooth

Thanks for the info Sanne,

I've just looked at the comparison link you quoted and I have seen that their is a Halifax children's account offering 6% for the first year. From what I understand this will also be tax-free if I open in my kids name (I have just had my first, 7 weeks old ). Is this legal if I am saving for myself?

R_P_W

tombooth wrote: »

Hi All,

I am thinking about starting to save money towards a mortgage some time in the next 5-10 years. I currently have no savings at all and should be able to save somewhere in the region of £100 per month.

I was hoping that someone could give me some advice on where to start looking to get the best return on this over the long term. Should I put it in an ISA or am I better off going with a standard savings account?

Thanks,
Tom

How much do you need to save?

Based on 100 a month it isn't going to make any material difference where you save it to be honest.

innovate

tombooth wrote: »

I've just looked at the comparison link you quoted and I have seen that their is a Halifax children's account offering 6% for the first year. From what I understand this will also be tax-free if I open in my kids name (I have just had my first, 7 weeks old ). Is this legal if I am saving for myself?

Money in a child's account legally belongs to the child, not the parent. Though most parents will probably find good reason for why the child needs the money in their accounts.

Children's savings are not automatically tax free. You need to fill in an R85 form - further details on the Halifax site.

You can get an adult Regular Saver paying 6% at First Direct, provided you manage to get a current account with them. This account takes up to £300 a month, and you can open another one as soon as the first one has matured.

tombooth

R P W - I will be saving until I have enough for a deposit for a mortgage (assuming I can get one once my bankruptcy is cleared off my credit report). In broad terms I guess I will be needing at least £10k so I'm probably looking at about 10 years.
Also, I hadn't thought about the fact that for the first few years the interest rate will realistically not make much difference. Thanks for pointing that out.

innovate - thanks for the info