£2000 per month to invest

Staceyjean

I am hoping to buy a property as quickly as possible and would not be able to get a mortgage. I have savings of £150k. But would need maybe another £100k to buy in the area I want.
My savings are earning virtually no interest at the moment.
I could afford to put around £2k per month away in savings.
I am looking for ideas.
I am 24.

eskbanker

Start with the 'quick link' articles above, labelled 'how to start saving' and 'top savings accounts', for the accounts paying the best interest.

If you're able to save £2K per month you obviously have a decent income, so it's not clear why you feel you wouldn't be able to get a mortgage, do you believe this would still be true in several years time when you've saved the extra £100K?

DrEskimo

The problem with saving up for property without a mortgage is that house prices will typically rise quicker than you can save.

Not sure where you are, but house prices around me have typically risen around 6-8% per year. It will take you over 4yrs to save another £100k at £2k per month, by which point it's feasible that the £250k property you want now, will be worth around £300/£325k in 4yrs time...

As above, I'm not sure why you can't get a mortgage, but that's the way I would go. Depending on the parameters, it will cost you substantially less than £2k a month to borrow £100k at 40% LTV. Or indeed save for another 4/5yrs, when you've got £100k more, then look at using that with a mortgage to get a substantially more expensive property? Although certainly not guaranteed, it would be a shame to miss out on any housing growth in the next 4yrs...particularly if you are spending money on other living arrangements, such as rent.

Oliver1191

You could go down the routes of LISA / S&S ISA...then there's option of a property ISA (bricklane.com).

Alternatively, you could look at a buy-to-let somewhere cheaper...or buy somewhere as your main home, and do a rent a room scheme during your working days...you could potentially get a lodger in your main residence then, which would offset your through-the-week lodging elsewhere.

Windofchange

You're 24, have £150k in savings and earn presumably north of 60 grand a year to have 2k a month just sitting around and you can't get a mortgage? Who did you annoy in the world banking sector!?

How about Shared ownership? Anything round your area that takes your fancy? Buy half of a £300k property for instance with your 150k savings, and then when you have saved the other 150k at a rate of £25k a year buy the rest of it in 6 years time give or take?

I'm still intrigued to know why you can't get a mortgage!

Alistair31

Windofchange wrote: »

I'm still intrigued to know why you can't get a mortgage!

Me too. Something doesn’t add up.

Windofchange

Alistair31 wrote: »

Me too. Something doesn!!!8217;t add up.

The £150k savings I get - could be a bereavement / inheritance.

The rest of it. Is the OP a big time drug dealer earning her 5k a month assuming she doesn't need to slip big Ron a grand to go debt collecting!? 24 seems young to have gone bankrupt, and assuming a take home of 3 - 4 grand a month how would that happen anyway!?

Come on, enlighten us!!

eskbanker

While I'm usually up for a bit of banter with the rest, I'd suggest that anyone who reads another of OP's threads (http://forums.moneysavingexpert.com/showthread.php?t=5803834) might think twice about flippant speculation about her finances, even though the full position still isn't particularly clear....

eskbanker

Oliver1191 wrote: »

You could go down the routes of LISA / S&S ISA...then there's option of a property ISA (bricklane.com).

Personally I don't think these fit OP's circumstances particularly well - a LISA can only be used in conjunction with a mortgage when buying a first home, and S&S investment is likely to be too risky if OP is looking to buy a property within the short to medium term ("as quickly as possible").