Saving for a mortgage - savings split?

WLITC

So I am hoping/planning to be in a position to buy around Sept 2017 which gives me around 19 months to save. Currently have £1600 in a Nationwide HTB ISA (started in Dec 2015 with £1200 deposit) and a further £1900 in regular bank account. From end of this month I will be saving £1500 a month. How do I best maximize this?

I was thinking £200 pcm in the ISA, Opening a Nationwide Flexclusive Regular Saver to get 5% on up to £500 a month for 12 months and putting the other £800 a month in another regular savings account? Does this sound like a good plan?

jimjames

Any reason why you're not getting the best HTB ISA with Halifax? Surely it's worth aiming for the maximum interest over that time period so your deposit is as high as it can be.

Regular savers are definitely a great idea, any excess balance can be saved in a current account at 5%.

YorkshireBoy

WLITC wrote: »

£1900 in regular bank account.

Which "bank"/specific account?

The fact you're considering the Nationwide Flexculsive regular saver would indicate the £1,900 is in a FlexDirect and currently making 5% AER? If not, why not?

Could you switch the 2% ISA into Halifax's 4% ISA in April?

5% AER is available on a total of £4.5K with TSB & Nationwide.
They both have 5% regular savers taking £750 a month in total.

Opening 3 more current accounts with FD, M&S, & HSBC would get you access to their regular savers, all of which pay 6% AER and will take £800 a month.

In 12 months time just grab the best rate you can for the remaining 6 months until you buy.

Of course, if you're up for a bit of account switching and prepared to put a bit of effort in, then switching into the above accounts (with donor accounts) could generate an additional £500 or so in switching incentives...and that equates to having an extra £10K at 5%. Free money!

savings_my_hobby

WLITC wrote: »

So I am hoping/planning to be in a position to buy around Sept 2017 which gives me around 19 months to save. Currently have £1600 in a Nationwide HTB ISA (started in Dec 2015 with £1200 deposit) and a further £1900 in regular bank account. From end of this month I will be saving £1500 a month. How do I best maximize this?

I was thinking £200 pcm in the ISA, Opening a Nationwide Flexclusive Regular Saver to get 5% on up to £500 a month for 12 months and putting the other £800 a month in another regular savings account? Does this sound like a good plan?

nationwide flexclusive is a good idea.

I'd think about a halifax 4% htb isa if i were you and a halifax reward account too.

The £1900 in "a regular bank account" should be put in a tsb classic plus account at 5% and a tsb monthly saver should be opened asap (£250 per month @5%).

A nationwide flexdirect account (£2500 @5%) and first direct (£300 per month @6%) would also be sensible.

WLITC

Thanks all, the £1900 is sitting in a regular Barclay's account at the moment. I have a Nationwide Flex account that I basically only opened so I could use Apple Pay and then without massive thought I opened a HTB ISA with them. I did then read about the Halifax rate and figured I could possible move it later (not sure how that works) but then wonder whether it was worth the bother I'll possibly only have about £5000 in the account by next Autumn? If I wanted to could I switch it to Halifax or do I have to wait? Beyond 4% of the ISA, is there any other advantage of Halifax over Nationwide?

As for the extra savings, to get the Nationwide Flexclusive Regular Saver I have to have paid in £750 a month for 3 months to qualify which I haven't yet. Although I think if I switch officially to Nationwide (i.e salary and dd's) then I can open it right away so tempted to do that. With regards to opening other savings with FD and M&S, etc, I might have issues for several more weeks as I was made Bankrupt almost 6 years ago and it doesn't fall off my credit file until end of March. Might try one of those once I know my CF is clean.

YorkshireBoy

Read the 2nd paragraph of my earlier reply again, and upgrade to FlexDirect. Instant 5% on your £1900 and automatic qualification for the regular saver!