House sold - No profit moving in with parents to save AGAIN!!

LaineyCox

My situation is: had a house with mortgage and sold it with no profit really, maybe £3k left after fees etc. moved in with my parents to save up for a new house with my husband and 2 kids. We're staying here for a year hopefully.

i want to use this opportunity to save as much as i can so i've worked out if i can out away £1500 each month plus savings i have i should have approx £24k to put down as a deposit.


Questions:


1.Do i qualify as a first time buyer again after 1 year of not having a mortgage?
2.What is the best way to save my money with the highest interest - i cant use the current account option as i wont be using the account for transactions at all?


Thanks in advance for any advice!!

Hoploz

Oh dear not a good position to be in.

For me the best return is always in property price growth but I guess you sold because you had to, for whatever reason.

Interest rates are extremely poor right now. Best advice I can suggest is that some banks offer linked accounts with good savings rates. You have your current account with them (may need to transfer from your usual bank to do so) and they offer comparatively good rates on a linked savings account. Still only a couple of % though. Have a look on the main MSE website - there are pages of current best deals on there

G_M

LaineyCox wrote: »

Questions:


1.Do i qualify as a first time buyer again after 1 year of not having a mortgage?
There is no single legal definition of 'FTB'. However for mortgage purposes, most lenders define it as someone currently without a property in their name. Or currently without a mortgage. Or currently without a property in the UK.
2.What is the best way to save my money with the highest interest - i cant use the current account option as i wont be using the account for transactions at all?
Look at the 'savings' forum - there are 1000s of people using current acounts for savings purposes only.


Thanks in advance for any advice!!

You're welcome.

LaineyCox

thanks, i bought my house right at the peak of the market before the recession, it dropped £20k over night really but we want a bigger house and to do that we need a bigger deposit! so this seems to be the only way forward as we have lost so much money on our house, we waited it out for 5 years to see if the market picked up but in scotland houses are selling but the values haven't gone up.

i'll look through the current accounts again but none of them seem that straight forward.

xylophone

You might need some Direct Debits (if short of these set up one Tesco Internet Saver and one Instant Access Saver on which DDs can be set up to pull money from other accounts) and a minimum pay in, but this is easily managed by cycling money round the accounts.

For example, a TSB sole for you and your husband and a TSB joint - start with £1000 in each - and send £500 a month to each until full.

Move on to Nationwide Flex direct, one sole each one joint (worth having for a year)

You can move money out of TSB to Nationwide on the same day to satisfy the £1000 a month pay in on each of these - add in your £500 a month to each account and the interest from the TSB accounts until these are full.

You might anyway want a 123 Santander joint account......and so on.

Pixie5740

In your part of Scotland house values might not have gone up but that doesn't hold true for the whole country.

It's too late now but would you not have been better staying put and overpaying your mortgage rather than moving back in with your parents?

If you've walked away with £3k after selling costs then you haven't lost any money at all. Everybody needs to live somewhere (a home not an investment) which usually involves paying either rent or a mortgage (until you pay your mortgage off) and I would much rather pay those than move back in with my parents (as much as I love them).

The good news is that if you are looking to buy somewhere else in the same area as your former home then the cost of it won't have gone up much either so stagnant house prices aren't necessarily a bad thing, in fact when looking to upsize they are a very good thing.

Some mortgage lenders give your house buying virginity back after you've not held a mortgage for 3 years. With other lenders is more and some less.

Have a look at the savings board. There are people there who daisy chain the high interest bearing current accounts. Once you've got the standing orders set up it's fairly straightforward I believe.