The 'We're saving for a deposit' thread

tara747

JimLad wrote: »

Sorry to be nosey, but I noticed your target is 12k for a deposit on a house?

The lowest i have seen is mortgages with a 10% deposit and they are at ridiculous rates. That puts you at 120k for a house, and unless you live in an uber cheap area i think your asking a lot.

Maybe im wrong?

Haven't you heard prices are plummeting...

Having said that, we want to save as much as w can, it's possible that we could have a VERY short mortgage (i.e. 5-10 years) or none at all if things carry on the way they are! :T

kacie

JimLad wrote: »

Sorry to be nosey, but I noticed your target is 12k for a deposit on a house?

The lowest i have seen is mortgages with a 10% deposit and they are at ridiculous rates. That puts you at 120k for a house, and unless you live in an uber cheap area i think your asking a lot.

Maybe im wrong?

I'm aiming for a 10% deposit, with the aim to get something for around 90-100k. I'm on my own so I'm looking at a 1-2 bed place

loveGSDs

a £120k property would be a pretty decent sized place round my way

well, an update on my savings.....was hoping to add the money saved on council tax over the next two months to my deposit, but stuff needing done in my current house will eat all that up (and more) :mad:

The_K_Man

I have posted previously, I am 24 years old and have been living at home for 2 and a bit years saving from scratch. I have £18,600 saved at the moment and am targeting saving £25,000 which i reckon i will reach in October/November. My maximum budget for a property then being £125,000. However, i would like to think i could pick up a 2 bed property for £110,000.

But actually, the more I think about it the better it would be for me to rent at this stage of my life. At the moment I have a decent job where I live. There are not many opportunities to earn what i am earning in other jobs in my area. To earn more than I currently am (and progress my career) I need to be promoted internally (which is unlikely in current situation) or move elsewhere in the country. I would not want to buy a house and be stuck on a fixed term deal with an early repayment charge of 3-5% on my mortagage which i would need to pay upon selling the property. It would only make sense to buy if house prices were rising and around my area they have been stagnant for the last 6 months.

I really do not want to commit to buy and then find that I really need to move home to progress my career. And before anyone says 'be grateful that you ahve a decent payed job at the moment', that is fair enough but I am ambitious. Of course, I want to move out of my parents house as soon as I can although I do get on well with them.

Chocolate_Cookie_Monster

Hello,

Could I join your thread?

I currenlty live in and own a one bed flat and my fiance and I have decided that we will be seriously saving for a deposit from now on as we desperately want to move area and get a bigger property so begin a family. We have been half hearted the last year or so and have paid off debts (I paid the last of my credit card this very morning) but from now on we are aiming on at least £800 per month.

Our deposit target is £30,000. I am also starting a seperate savings account to deal with the fees that will be involved with selling my current flat although I am doing this on the sly from excess from our mortgage account. I have today managed to reduce our energy bill by £22 per month and service charge should be reduced this coming year and the 2 month break from CT will all go to this pot.

We also overpay the mortgage by £200 per month - in a hope to reduce the negative equity we are in (flat bought in 2008). Should we continue to overpay mortgage or put it into the deposit saving?:undecided

ManPants

Chocolate_Cookie_Monster wrote: »

We also overpay the mortgage by £200 per month - in a hope to reduce the negative equity we are in (flat bought in 2008). Should we continue to overpay mortgage or put it into the deposit saving?:undecided

Hello and welcome!

I'm in similar position to you. Bought our first house 5.5 years ago and had been saving up a deposit for a nicer, bigger house in a better (posher) area. Anyway after saving up £30,000 I ended up putting that down onto the current mortgage as the amount of interest i was getting for it was minimal in a savings account versus the amount of interest I would end up paying on the mortgage. Mortgage is now down to just over £30,000 and will probably be paid off entirely in the next year. Rather than saving up I put all extra money onto the current mortgage. Not sure it is actually the right thing to do but it is what I am doing!!:) Obviously we still intend to move so the money will be ultimately used that way.


Stupotstu

Chocolate_Cookie_Monster

stupotstu wrote: »

Hello and welcome!

the amount of interest i was getting for it was minimal in a savings account versus the amount of interest I would end up paying on the mortgage.

Stupotstu

I never thought of it like that before. I was just thinking about paying off my negative equity (which I think we will do this year) but actually everything else on top will be capital for the next purchase. I guess when you're saving for a deposit though its just more of a solid figure that you can keep an eye on and target rather than reducing a debt you can't see month by month (if you see what I mean)

claireablast999

Hello every one can I join in too?

I am new to saving and have been reading this post most of the eve. This Friday will be the 1st day I save money for a deposit, I only work part time but I should still be able to save £400 - £500 pm and my other half is planing to do the same. even if we both only save £400 pm each thats £800 pm and £9600 per year. between us we bring home around £27-000 per year but we are both training and working towards a better job

Step 1 of the plan
Buy our council flat worth around £120-000 we get a £38-000 discount so the cost of the flat is really only £82-000. We want to save as much as we can over the next 12 months and then look into mortgage options. once we have the mortgage sorted out for the flat we will move on to step two

Step 2
Get a deposit together and buy a small house close to a large town and let out our Right To Buy flat. I plan to be working for a bank by this time so we should be able to get a good mortgage rate on both places.

I now need to work out the best saving options so I have somewhere to put my first month of savings, there are so many places to save and I don't know which one is right for me.

CheeseCat

No offence, but it seems a bit 'off' that you've been in council housing which has allowed you to save up for two houses? :eek: Doesn't seem right to me..

Anyway!

I am also saving for a deposit, I am only £300 away from having 10% :j

Svenena

Hi all, I've been thinking about joining this thread for a while, but wanted to actually get some savings in an account first, so I wasn't posting that I'd achieved 0%.

I'm 27, and saving to buy a house (I definitely don't want a flat) by myself. My deposit target is £40,000, and I estimate that it'll take me about five years. That will give me a deposit of around 25-30%, as I'd be looking for houses in the region of £140k (although there's not much around at that price). As of today, I have £1794.28.

I'm putting aside around £540 a month. At the moment that's all going into my ISA (at 3.08%), but after pay day at the end of the month I'm going to open a regular saver with First Direct, which pays 8% and allows you to put in up to £300 a month. I then need to decide where to put the other £240 a month, but I'm going to see what's available in March, in terms of regular savers and ISAs. I'll need to transfer my current ISA as the rate drops at the end of April. If I go for another regular saver, I need to start it by mid-March, as the plan is to fill my 2011-12 ISA allowance in March 2012, so the money is protected from tax in the future, but has benefited from the higher interest rates of a regular saver in the meantime.

I'm expecting some inheritance money at some point, probably not for several months, which could be in the region of £20k, but I won't count this towards my target, it'll be on top of it, as it was unexpected.

I do odds and ends occasionally to increase my income, like participating in studies and selling competition wins, so hopefully I'll be able to add a bit extra every now and then. Unfortunately I have a bit of a predilection for impulse buys, so I'll have to overcome that as much as possible.

Five years seems like a crazy amount of time. Hoping house prices will come down a bit in the future (they're still slightly on the increase in my area, so I'm not optimistic), but I do have small yearly pay increases to look forward to. And in a few years, I may look to moving to a better paid job. Anyway, if I don't start saving now, I'll never get anywhere! So... onwards...