Saving for my 1st house

steampowered

will369 wrote: »

How can I open one of these?

I live in Exeter, Devon.

I am looking to buy a 3 bedroom house. A new build.

Not sure if 30k is enough?

It depends on your salary.

The average price of a house in Devon is £247,080 apparently.

£30k is a sufficient deposit. But if you are earning say £30k a year you could only borrow about £135,000 as a mortgage.

In which case a 3-bed new build might be a bit of a stretch.

Azzzaa

Right, I'm in the same boat as you, i'm 23, £15k in savings, I have a standard HTB through Santander with currently £1k in it. I have around £6k in assets to sell.

My advice would be start by writing down all your incomes and outgoings, working out how much you can realistically save, for your target you'll be looking to save £1k a month, is this realistic without 'investing/saving in high interest accounts, because you really wont get much from stocks/shares/any decent interest account in 3 years.

Do you have any current savings/assets?

I'm a visual person, I have my online banking app and sheets of paper everywhere with targets etc wrote down, it's like a vision board!

If you don't already i'd start with a standard HTB account with a high street bank, play it safe, you can only deposit £200 a month but if you start now you'll have £7.4K plus an additional £1.8k bonus plus interest (which isn't much, i think mine is only 1%. ( the way to look at the 1.8K is to tell yourself to use 1.8k from your regular savings account when you go to buy for fees) so the bonus tops that goal back up to the 30k mark.

I don't know your financial situation but is saving £1k a month realistically achievable EACH month for the next 3 years? As i put away £860 per month after giving myself only £200 a month to live on (living with rents) thats after all mandatory bills/DD and rent to rents.

Redalligator

Azzzaa wrote: »

Right, I'm in the same boat as you, i'm 23, £15k in savings, I have a standard HTB through Santander with currently £1k in it. I have around £6k in assets to sell.

My advice would be start by writing down all your incomes and outgoings, working out how much you can realistically save, for your target you'll be looking to save £1k a month, is this realistic without 'investing/saving in high interest accounts, because you really wont get much from stocks/shares/any decent interest account in 3 years.

Do you have any current savings/assets?

I'm a visual person, I have my online banking app and sheets of paper everywhere with targets etc wrote down, it's like a vision board!

If you don't already i'd start with a standard HTB account with a high street bank, play it safe, you can only deposit £200 a month but if you start now you'll have £7.4K plus an additional £1.8k bonus plus interest (which isn't much, i think mine is only 1%. ( the way to look at the 1.8K is to tell yourself to use 1.8k from your regular savings account when you go to buy for fees) so the bonus tops that goal back up to the 30k mark.

I don't know your financial situation but is saving £1k a month realistically achievable EACH month for the next 3 years? As i put away £860 per month after giving myself only £200 a month to live on (living with rents) thats after all mandatory bills/DD and rent to rents.

I believe it would make more financial sense to open a LISA. The Skipton building society has recently opened a cash LISA with 0.5% interest rate. Although this is less than the interest rates on Help to buy ISAs, you can get more money from the bonus as you can deposit more in to a LISA.

In the circumstances of the original poster.

LISA:
deposit £4000 a year. this would equal £12000 + £3000 bonus + interest.
= £15000 + interest over 3 years

Help to buy:
deposit £3400 (This is allowed in first year of help to buy ISA) in first year then £2400 a year for the next 2 years after would equal £8200 + £2050 bonus + interest
= £10250 + interest over 3 years.