Deposit dilemma

MERFE

Can't believe how negative everyone is. We are saving for our first home whilst also repaying debts with 3 expensive children. How fast are you looking to buy. We think we will have enough by 2019 for a 10% deposit plus fees but we moved from the South East mostly due to insane house prices so I don't think moving somewhere cheaper is a terrible idea. I use several regular savers to get reasonable interest rates but then we only have so much spare each month. Looking on the savings board for advice on the best rates and accounts is probably a good idea.

bhoy1976

So everyone is being negative because I didn't provide full facts and figures in my thread opener, Comms69?

Well that's a load of crap if ever I heard it.

I started a dialogue and all I got was negative tripe about my life, expenditure etc.

It's obvious a few people are being downright unhelpful and have jumped the gun in their replies.

To make it clear, my surplus will be a few hundred per month with the possibility of a little extra here and there form time to time.

When the Help to Buy deposits I've seen are as little as £5K, that doesn't seem unreasonable in my opinion.

Moving out of the county isn't an option.

My life and career is here.

bhoy1976

MERFE wrote: »

Can't believe how negative everyone is. We are saving for our first home whilst also repaying debts with 3 expensive children. How fast are you looking to buy. We think we will have enough by 2019 for a 10% deposit plus fees but we moved from the South East mostly due to insane house prices so I don't think moving somewhere cheaper is a terrible idea. I use several regular savers to get reasonable interest rates but then we only have so much spare each month. Looking on the savings board for advice on the best rates and accounts is probably a good idea.

It's unreal isn't it?

Some folk obviously got out of the wrong side of the bed this morning.

Apparently I came to the wrong place for advice.

Having come from debt failure to the other side perhaps I have a little bit more faith in achievement than others.

Sounds like you are in a similar position to me MERFE.

We live in the south east and I can't move right now because of my career.

We will likely remain here for the rest of our lives, unless we move to my wife's home country in later years, but that isn't to say we couldn't move within the UK in the future.

Comms69

bhoy1976 wrote: »

So everyone is being negative because I didn't provide full facts and figures in my thread opener, Comms69? - Well your initial post did seem a bit ranty

Well that's a load of crap if ever I heard it. - ok then, my mistake

I started a dialogue and all I got was negative tripe about my life, expenditure etc. - where?

It's obvious a few people are being downright unhelpful and have jumped the gun in their replies.

To make it clear, my surplus will be a few hundred per month with the possibility of a little extra here and there form time to time. - Right so, the interest wont be worth much. May aswell just pick an account with your current bank

When the Help to Buy deposits I've seen are as little as £5K, that doesn't seem unreasonable in my opinion. - It's typically 5% I believe, so is the house you want 100k?

Moving out of the county isn't an option.

My life and career is here.

Right, so you will be saving for how many months?

bhoy1976

Comms69 wrote: »

Right, so you will be saving for how many months?

I'm struggling to see what part of my original post was ranty so please point out it out to me?

The example properties on the Help to Buy website offer smaller percentages for shared ownership so whilst the full market value might be £400K, some shares are about a quarter so yes the mortgage amount could be around £100K thus £5K deposit.

We'll be saving for the minimum of a year so saving for this is achievable given my limited knowledge

steampowered

I always think it is a good idea to set up a direct debit to move money from your current account to a savings account on payday.

Whatever is left in the current account is there to spend.

This forces you to save a consistent amount each month. It is very easy to spend money if you leave it sitting in your current account.

You should also put your expenditure into a calculator - there is one on MSE. Take an honest look at everything you spend, and try to assess whether there are any opportunities for making savings.

saajan_12

bhoy1976 wrote: »

House prices are very high where we live so Help to Buy Shared Ownership appears to be the only realistic option.
So, how do we get that deposit? We can't move in with our parents, have any inheritance or the like so it will just be save, save, save.

How is this a dilemma? House prices are what they are, if you can't afford one then continue renting or save up. You gave the answer in your OP so there isn't really anything constructive we can add

bhoy1976 wrote: »

We're looking to save for a deposit. We just wanted to know where would be best to put that money for interests sake.

Ahh you didn't say that. This board is about house buying issues, your question is really about savings and investments and would be better suited on that board.

bhoy1976 wrote: »

Why is everyone so negative?- they're not, they're just baffled about a non-question.

Did I come to the wrong place? - yes, if you're asking about ways to maximise savings, you should go to that board.

Surplus income varies from month to month-
there's no universal answer as to the best way/place to save, it depends on your situation. If you want help you need to be able to give specifics.

Comms69

bhoy1976 wrote: »

I'm struggling to see what part of my original post was ranty so please point out it out to me? So, how do we get that deposit? We can't move in with our parents, have any inheritance or the like so it will just be save, save, save.

The example properties on the Help to Buy website offer smaller percentages for shared ownership so whilst the full market value might be £400K, some shares are about a quarter so yes the mortgage amount could be around £100K thus £5K deposit. - But can you afford both the mortgage and the 'rent'?

We'll be saving for the minimum of a year so saving for this is achievable given my limited knowledge

£200x12 = £2400 though, that might just about cover mortgage and solicitor fees?

Rambosmum

bhoy1976 wrote: »

To make it clear, my surplus will be a few hundred per month with the possibility of a little extra here and there form time to time.

When the Help to Buy deposits I've seen are as little as £5K, that doesn't seem unreasonable in my opinion.

Moving out of the county isn't an option.

My life and career is here.

People shouldn't be being negative.


ISA is probably your best option.


Have to talked to any shared equity schemes in your area to look at the full costs?

00ec25

Rambosmum wrote: »

People shouldn't be being negative. no people should be unrealisitic and encourage others to buy buy buy when they have no idea about the personal circumstances of a person except that the person has declared their "only" realistic option is shared ownership which of course is fraught with problems for the unwary. Also "we" should encourage someone to buy whose finances imply it may be a big struggle for them at a time when interest rates will rise and house prices could (I am not saying will) fall leaving them with a capital loss and a shared ownership property that is harder to sell than a "normal" property

this is not Mum's net, a dose of "moral input" can save someone from a course of action that may not be suitable if re-considered

ISA is probably your best option.

Have to talked to any shared equity schemes in your area to look at the full costs?

OP has now provided some realistic context. The aim appears to be a save 5k in a 12 month period

given that modest target the question of where to save is answered in one place only: a HTB shared ownership ISA is the "best" option given the 25% "free money" boost
Any interest earned on a "normal" savings product is meaningless given the low interest rates on all such other savings accounts and the 1 year timescale

https://www.helptobuy.gov.uk/help-to-buy-isa/who-is-eligible/

https://www.helptobuy.gov.uk/shared-ownership/