Never mind the house prices, I'm saving a deposit.

bdon

totally agree - saving and being prudent should not be punished - we don't need big cars and big tvs - let's give the debtmongers one in the eye and start being frugal - that'll teach them!

Lavendyr

I managed to put a rather large chunk away this month, owing to the lack of council tax, enough in fact to mean that I can fill my ISA allowance for 08/09 straight away come 6th April, which is amazing for me since it's only the first year I've been really able to save! We do now have a 10% deposit ready, but we want to get even more together and wait and see what house prices do in the next year or so before committing to buy.

carpy

MrSafeGaz wrote: »

I have never bought a house so take this as you will but I would factor the following into account: -

• To a point, the more you put down as a deposit, the lower the LTV (Loan To house Value ratio) will be therefore it gives you access to products with better rates.
• The more deposit you put down, the more likely your application will be accepted by the mortgage company.
• How much money would you need to put aside for any furnishing and other costs after moving into the house.
• How much money would you need to put aside in terms of any emergency funding you would potentially need in the future.
• Can you put some of your savings in a savings account (ISA etc.) which would yield a better AER than your mortgage APR, therefore being more profitable for you.
• Would you just prefer to knock as much off the mortgage right away just because psycologically it would just feel good to see a lower balance.

Just a few things to consider

some good points there and the highlighted one is interesting and had crossed my mind before:T

flybynight

i must admit, this is my aim. the plan is to keep paying off debts and then start saving for a deposit. at the moment i am jsut pleased we now reach the end of the month before the end of the money as this wasnt happening before.
I'm just chuffed that i am now renting somewhere quite nice with my missis, have done the houseshare with random people (moved out young) and have doen houseshares with mates. have never felt that insecure, you get a months notice, I've always managed to find a roof with a month to go. But shes after a house and i have to admit i'd love a garage to potter in. I'm liveing by the plan we may aswell keep paying off what we can and aim to start saving as soon as we can, coz you never knwo when i will need the money for summat.
can't quite understand the fact that at work everybody keeps telling me to get on the property ladder ( these are people who are 10-20 years older than me so obviously have lots smaller mortgages), not sure what they want me to get on it with.lol but im not exactly waiting for a crash. lifes too short

SarahNeedle1872

Any update yet BAS?

Alexander_Pato

born_again_saver wrote: »

We can all boggle at the house prices of today. How do you buy your own, albeit modest first place as a young, single person earning less than 20k? Or as a couple earning £30-£40k between you? "Priced out" first time buyers young and old, what are we to do?

Save, save, save.

It's the only thing that makes sense to me right now. It's what our parents did. It's what a lot of people on here and elsewhere are recommending, even people who might have said "buy whatever it costs" not so long ago. The mortgage lenders are changing their rules, once again they'll want a sensible deposit before they'll give you a mortgage with sensible interest rates.

I'm in my late twenties and on below £20k. I'm renting a room in a shared house - and I'm single. I'm going to save up a deposit of £20,000 to buy myself my first home, plus costs, with a view to buying in late 2011. I've already got nearly £4,200 to get me started.

My savings target is now in my signature. It will take me a few years of hard saving, and there's no guarantee I'll be able to afford anything in 2011 either, but you have to aim for something.

Hi born again saver, ur doing very good by saving, i now have £40,650. have had a good month at work and kept my outgoings very low for the month, gotta save save save. i'm lookin at buyin a house within the next 2-3 years. as long as prices dont rise i should be ok. good luck with your saving for a deposit

born_again_saver

SarahNeedle1872 wrote: »

Any update yet BAS?

I still feel like it's a struggle with the money this month, although being back to work after Easter should help me get back into a routine of spending less. It's a case of damage limitation now, I'm just trying to hang on so that I'll save at least something. I've got some savings put aside to go into a new ISA next month, but I've had to break into them a couple of times this month just to make sure I can get by

I know that for me looking into mortgages and buying is a long way off, but I'm getting a bit disheartened with the news of banks tightening borrowing criteria and higher mortgage rates. My only hope seems to be that house prices do actually come down as a result, this seems to be the next logical step if borrowing is made harder and more expensive - though I know that's a whole other debate. If prices go up again I'll just not be able to save a deposit fast enough, though.

Oh dear I'm sounding pretty negative, it's not really all that bad of course, I'll just be glad to see next pay day :j

Alexander congrats on your fantastic savings total, and also to Lavendyr for being able to fill your next ISA. Also to flybynight for reducing debts, I'm sure you'll be saving too in no time. Let's keep each other motivated, even if times seem hard!

neverdespairgirl

beerhunter wrote: »

It simpley means if your renting and not saving your doing yourself a big injustice for your future.

Most of your post I totally agree with. There are circumstances in which renting and not saving is a good investment in your future, though, if you are doing training or studying, for example.

brit1234

born_again_saver wrote: »

I know that for me looking into mortgages and buying is a long way off, but I'm getting a bit disheartened with the news of banks tightening borrowing criteria and higher mortgage rates. My only hope seems to be that house prices do actually come down as a result, this seems to be the next logical step if borrowing is made harder and more expensive - though I know that's a whole other debate. If prices go up again I'll just not be able to save a deposit fast enough, though.

I wouldn't worry about price rises the high lending conditions will bring prices down. You can't have the market going stagnant for years, something will give.

Its likely we wil have some 1% falls over the next few months, perhaps bigger.

SarahNeedle1872

I don't know muxch about the housing market, but I would suggest that if u are looking to buy around 2011, don't worry too much about whats going on right now..... as the last poster said, the market won't be left stagnant for a longtime, that'd have a wider effect on the economy...

I know it feels bad dipping into ur savings, but better to do that than get urself into debt. U are doing really well so far, keep up the good work! I am actually very jealous of ur position!

Sarah x