Planning to buy/save a Deposit for 2023 - Advice/Thoughts

DoubleMaximum

Hi all,

I'm working towards saving for a deposit with a view to buy a place sometime next year - and need some thoughts as to whether this is achieveable or not as I feel I'm missing something...

I've have saved around £20k so far (across a recently-opened Lifetime ISA, a S&S ISA and my Savings Account) - debt-free for over 5+ years, an excellent Credit Rating, only real major outgoings are my Rent (£1,400), a PayPal Credit Account which I've been paying off monthly (and hope to clear over the next 6-8 months) and have been consistently putting money away always trying to cut down spending to save as much as possibly can over the next year - with a view to potentially save £35-40k this time next year.

The ideal being that I can put a Deposit down somewhere on flat between £250-275k - with a £30k Deposit (a little over 10%) as well as £5k+ for any potential fees that might come up. Am I missing anything? I've been researching and think I've covered all bases in terms of fees/legal costs/surveyors, etc but would love to hear any ideas/thoughts/comments, especially around what I'm potentially doing wrong - especially mindful during the current climate and I'm very, very nervous as I don't have a 'bank of Mum and Dad' to lean or a partner to share this all with as I'm doing this myself

Thanks in advance

onylon

Sound like you have it all worked out.

Make sure you have cash left for furniture, appliances and general maintenance. It's so easy to pop to the shops for an oven bulb and come back with £500 of basic tools and decorating supplies.

seradane

How much do you earn?
A £275k property minus a £30k deposit is a £245k mortgage. The salary multiplier limiting borrowing means you're going to need to be earning at least £49k p.a. for a bank to lend you that much.

newsgroupmonkey_

seradane said:

How much do you earn?
A £275k property minus a £30k deposit is a £245k mortgage. The salary multiplier limiting borrowing means you're going to need to be earning at least £49k p.a. for a bank to lend you that much.

I'm guessing here that an entry level £275k flat is likely to be in a fairly well paid area of the South East.
£275k would be getting you a 5 bed detached house in the North East

MovingForwards

It's risky having it in a S&S ISA, if the value drops you've lost part of the deposit you've saved hard to put away.

DoubleMaximum

seradane said:

How much do you earn?
A £275k property minus a £30k deposit is a £245k mortgage. The salary multiplier limiting borrowing means you're going to need to be earning at least £49k p.a. for a bank to lend you that much.

Fortunetly more than that, which I considered also around the Bank being able to lend - just want to make sure I haven't missed anything else

DoubleMaximum

newsgroupmonkey_ said:

seradane said:

How much do you earn?
A £275k property minus a £30k deposit is a £245k mortgage. The salary multiplier limiting borrowing means you're going to need to be earning at least £49k p.a. for a bank to lend you that much.

I'm guessing here that an entry level £275k flat is likely to be in a fairly well paid area of the South East.
£275k would be getting you a 5 bed detached house in the North East

I know, I was amazed looking at house prices further in the North

badger09

MovingForwards said:

It's risky having it in a S&S ISA, if the value drops you've lost part of the deposit you've saved hard to put away.

Absolutely. S&S ISA (depends on what investments held in it) is suitable for long term savings, but very risky for house deposit in the next year or so.

propertyhunter

Keep the funds in the highest easy-access savings account going. It might be a paltry 0.7-0.8%, but at least you're doing your best to take a little bite out of inflation. 

saajan_12

propertyhunter said:

Keep the funds in the highest easy-access savings account going. It might be a paltry 0.7-0.8%, but at least you're doing your best to take a little bite out of inflation. 

If OP is expecting at least a year to save the deposit, then there should be 90day notice or 1yr fixed accounts offering 1 - 1.5% interest. 

With S&S you take the risk of the value going up as well as down.. so depends on whats more important for OP - definitely being able to buy a house, or maximising their return and taking the risk that might mean no house next year. 

dimbo61

You have got £4,000 in your LISA for this Tax year and another £4,000 ready to in to the LISA after April the 5th ?
government bonus of £1,000