Saving for a house deposit

nicolenayar

Hello everyone

I am looking to buy my first home at some point in the future and wondered if anyone had any advice on saving for a deposit and utilising the Government schemes.

I am based in Edinburgh, and I know the Scottish Government's schemes are slightly different to the English ones.

I have £4000 saved at the moment, but to get a 10% deposit on a home in Edinburgh I would be looking at needing around £12-15k to get something suitable.

Should I keep saving as is and build up the money I need? Should I put this money in a high earning saving's account (my savings are currently in Premium Binds)? Should I leave my current savings where they are and open a Help to Buy ISA?

Any help is much appreciated!

SCDH

Definitely open & save into a Help to Buy ISA as well as using your current savings account.

datlex

I found splitting my money up help me save. Premium bonds do not pay interest. You might win, but most people don't. Move £1200 into a Help to buy Isa today. Then £200 tomorrow and £200 every month , the HTB gives you 25% when used properly for a deposit. Put the other £3000 into a high interest current account (to allow easy access).

How much can you afford to save each month? Put that into a monthly saver, different banks have different interest rates on their saver accounts. If necessary open a current account with that bank.

Pixie5740

If you are under 40 I would opt for the LISA rather than the HTB ISA because you can save more each month into it which in turn means a larger bonus from the government. Furthermore, the maximum allowable house price is greater with the LISA which might be important if you are looking to buy in Edinburgh.

HTB ISA vs LISA

bopsybunny

Depends how quickly you think you'll save a big enough deposit..
Less than one year: consider HTB ISA
Over one year: consider LISA (Cannot claim bonus until account open for 12 months)

I don't know much about Premium Bonds so I don't know average rate or return but I know it's down to luck/not guaranteed.

HTB ISAs/LISAs typically have quite good interest rates, above 'normal saving account' interest rates, plus the 25% government bonus.

If you open a HTB ISA, you can only deposit lump sum of max. £1200 in the first month, and then £200 each subsequent month, so you could leave some in Premium Bonds.

Estheroid

Another vote for the HTB ISA (I was too old for a LISA!! :rotfl:) My partner and I have just bought, both with HTB ISAs which were a huge help. May also be worth checking if the provider gives an incentive if you take out a mortgage with them too - we were pleasantly surprised that we got another £1k on completion with Nationwide. Best of luck with the saving!