Deposit advice

chads_78

We are lucky enough to be offered 20k. However, I haven’t a clue what to do. Ideally my partner and I would like to buy our first house. More so me because I am 39 and the click is ticking in terms of a mortgage. Because of our income it is not that easy. I earn 16,500k a year and last year spoke with my bank about a mortgage. We have two children and my partner stays at home. We have no debt and we get child tax and working tax credits. The agreement in principal was just shy of 40k.

As a result I need to increase our income and I am looking to start a Masters degree this year to help.

Because we would like to buy I would like to use this money as part of a deposit in a few years once I have completed a Masters and earning a better salary. This said I am also aware that it would affect our any benefits we receive.

Therefore, I thought we could put the money into, for example, a Help to Buy ISA?

If anyone can offer some advice it would a massive help.

da_rule

Help to Buy ISA is an option.

You are your partner can both open one and pay in the maximum £1,200 to open the account and then the maximum £200 each per month.

The maximum bonus (£3,000) means that any balance over £12,000 in the ISA doesn't get the bonus.

AnotherJoe

You are a graduate on £16.5k? What job do you do where the basic salary is so low and a masters is needed to increase salary? Someone is taking the michael.

Perhaps look at a different job area entirely or just accept you arent going to be buying ?

marliepanda

You can only put £200 a month in a HTB isa and an initial payment of £1200, so right now you can put £2400 in, then £400 each month (inc your partner?

However I'm pretty sure it will all be counted as capital with regards to your benefits. The amount not in the ISA will be for definite and that's going to be just she of £18k

Doing a masters (or any degree) does not guarantee an increase in salary. You can't just 'hide' the money until you're ready to buy. It will affect your benefits. Focus on increasing your salary now. Can your wife take on some hours (depending on the age of the children?)

There are many unskilled jobs that pay more than £16.5k, are you able to look for some of those? Increase your hours?

chads_78

Yes, I am a graduate. I didn't go to university until my late 20s. When I graduated I wanted to do an MA but money was the issue. Since I have had two children. The job I do I was lucky enough to get in terms of the type of job. The MA or postgrad diploma is the prof qualification. This would increase my salary by 10k.

marliepanda

chads_78 wrote: »

Yes, I am a graduate. I didn't go to university until my late 20s. When I graduated I wanted to do an MA but money was the issue. Since I have had two children. The job I do I was lucky enough to get in terms of the type of job. The MA or postgrad diploma is the prof qualification. This would increase my salary by 10k.

If it's a dead cert, use your 20k to fund your masters then save like mad. Yes you'll have to rebuild the deposit by you'll have a much higher salary to play with.

Harryp_24

Still trying to work out what job pays 16.5k with a degree and 26.5k with a masters? maybe you should change profession unless there's a personal reason your in that field?

GDB2222

Just as an example, a speech therapy assistant would earn around £16k. Do a one year MA to qualify as a speech therapist, and the starting salary is around £10k more.

chads_78

Thanks for the advice. In terms of my job, it is not a graduate job. I work in local government in the north east as an archives assistant. The pay is low I agree but I do really enjoy me job. To become an archivist you need to complete a postgraduate diploma and either work or volunteer in a archive/ records office. The MA is simply the dissertation at the end.

A degree doesn't guarantee you a high paid job just like a deposit will not guarantee you a mortgage. And there are similar people to me out there. Unfortunately for me I got into this job later in life and now I am feeling the repercussions. If only I was 10 years younger...

beecher2

Not many archivist jobs about though, would your employee offer you a job if you qualify? Would they be willing to help fund your training?