The 'We're saving for a deposit' thread

If_My_Pennies_Were_Pounds

I'd like to join if I may?

We're busy saving for our first place, we started in January and the total saved so far is in my signature. I signed us up to the challenge save 6k in 2012 but if I'm honest I would like us to save more than that.

We're both 24, have ok jobs where we are able to save without scrimping too much and to be honest we should probably push to save more.

The problem is that we don't really have a specified final target at the moment and have no real idea what sort of figure / % we should be aiming for?

When I was last in the bank about various accounts they did a look up and said at present we could get up to 190k, what % of that do you think we should aim for? We want to aim as high as possible, to the top of our market potential and at least then we know we'd have enough to afford that, if that makes sense?

savingmummy

If_My_Pennies_Were_Pounds wrote: »

I'd like to join if I may?

We're busy saving for our first place, we started in January and the total saved so far is in my signature. I signed us up to the challenge save 6k in 2012 but if I'm honest I would like us to save more than that.

We're both 24, have ok jobs where we are able to save without scrimping too much and to be honest we should probably push to save more.

The problem is that we don't really have a specified final target at the moment and have no real idea what sort of figure / % we should be aiming for?

When I was last in the bank about various accounts they did a look up and said at present we could get up to 190k, what % of that do you think we should aim for? We want to aim as high as possible, to the top of our market potential and at least then we know we'd have enough to afford that, if that makes sense?

Personally the bigger the deposit the better - some info here that may help you PLUS a calculator http://www.moneysavingexpert.com/mortgages/

[Deleted User]

If_My_Pennies_Were_Pounds wrote: »

I'd like to join if I may?

We're busy saving for our first place, we started in January and the total saved so far is in my signature. I signed us up to the challenge save 6k in 2012 but if I'm honest I would like us to save more than that.

We're both 24, have ok jobs where we are able to save without scrimping too much and to be honest we should probably push to save more.

The problem is that we don't really have a specified final target at the moment and have no real idea what sort of figure / % we should be aiming for?

When I was last in the bank about various accounts they did a look up and said at present we could get up to 190k, what % of that do you think we should aim for? We want to aim as high as possible, to the top of our market potential and at least then we know we'd have enough to afford that, if that makes sense?

From the research I have done it seems that the cost of borrowing drops significantly with a minimum of 15% as a deposit, and drops a bit more up to 25%, but beyond that I couldn't see much difference.

I'm personally aiming for 25% as a minimum - I like the idea of the security of starting out with a mortgage with a descent amount of equity.

D9

If_My_Pennies_Were_Pounds

So really we need to be looking at at least 30k up to about 50k?

Aww we're gonna be saving for ages then! Luckily we're in no real rush, but I don't want it to take forever!

Any hints and tips to speed things up?!

MiddyMum

I am looking at 32k minimum as well, but really I need about 40k. It is a lot of money but I too, like the idea of having a big chunk of equity already once you start making repayments.

MiddyMum

Are any of you here, choosing to buy in London? What is your deposit target? Do you have a high salary as it is, I will probably save a decent deposit, as by the time I get to seriously look, I will be working two jobs but since the property prices are around £400k + in London, they would laugh at my piddly 30-40k salary. Im not sure what to do, as I dont live in London at the moment but I have the option too, and the shared ownership horror stories put me off a little.

savingmummy

If_My_Pennies_Were_Pounds wrote: »

So really we need to be looking at at least 30k up to about 50k?

Aww we're gonna be saving for ages then! Luckily we're in no real rush, but I don't want it to take forever!

Any hints and tips to speed things up?!

Best thing to do as a start is look at what income you have coming in and whats going out each month.
See if you can make any cut backs, be as brutal as you can

Sell things you no longer what or need, if you have an hobbies maybe turn it into an income.

Little things soon build up into big things

savingmummy

MiddyMum wrote: »

Are any of you here, choosing to buy in London? What is your deposit target? Do you have a high salary as it is, I will probably save a decent deposit, as by the time I get to seriously look, I will be working two jobs but since the property prices are around £400k + in London, they would laugh at my piddly 30-40k salary. Im not sure what to do, as I dont live in London at the moment but I have the option too, and the shared ownership horror stories put me off a little.

What are the reasons for London as a first choice?
Could you maybe look at outside of London near the tube so you can travel in?
Essex etc has properties for half of that 400k and near enough to London for commutes.

MiddyMum

Yes, I wont be able to afford London. I will look to see how long it would take to commute into London from Essex, I have oppurtunity to move to London next year, but will be renting while I save. So, I need to live somewhere that has relatively low rent so that I can save and pay rent at the same time. Is that optimistic for the south? lol I have the oppurtunity to move up north too.I know kent has some lovely cheap areas, but I hear that the commuter train is a bit of a hassle...

MiddyMum

The only reason for me wanting to go back to London possibly, is because I really wanted to go to the uni there. (Kings College London) Although, I dont need to live in London for that, I can commute. I am planning on studying and working at the same time.