The 'We're saving for a deposit' thread

J_i_m

I have to admit... When I do finally reach my target (probably in between 2 to 2 and half years time) I expect the house search to take a while so I fully intend to continue saving throughout the search and buy period so I have funds for furniture, white goods, decor and contingency money.

echo_and_narcissus

Opened my brand spanking new savings account yesterday. Started with £100 in, will add up my small amount of existing savings and create a fancy sig like you guys here already have to keep a running total!:D

rainbow90

Hi all,
I hope it is ok for me to join this thread as a newbie saver, I have registered just for this purpose but I have been reading the forum for quite a few weeks now (others are right it is an addiction, I even find myself on it in my spare time at work!)

I have just turned 22 and started my graduate job in October, I am hoping to save minimum £300 a month but more when possible with a target of £15,000-£20,000. I earn £1328pm after tax and pension but my monthly costs at the moment are quite high due to OH not being in a properly salaried job yet (just left the forces so taken a minimum wage job to bridge the gap).

Just a quick question that I am looking for advice on really, I don't have any debt really that I pay interest on (£167 on a CC which I will pay ASAP and student loan but per another thread I am just going to pay the minimum until it disappears in 35 years) but I did take a pre joiner interest free loan of £2,000 for moving costs from my firm which I pay back at £41 a month over 4 years (already accounted for before the £1328). My student loan payments begin in April (£39pm). I have the opportunity to take a further £5,000 interest free over 4 years which will be about £103 (ish) per month. In your opinion should I take up this offer? I have to take it up before end of September as it must be within first 12 months. I hope to have a house before those 4 years are up so I would appreciate the savings boost (plus the morale boost of seeing the % rocket). Or do you think it would be better just to save up what I can each month and avoid taking the extra £103 a month hit?

kirstycobie

well done to everyone who has managed to save somthing.

please tell me your secret, i have been saving for 11 months now and have a grand total of £450!!!!!!! think ill be a granny by the time i save up £20k (im 29) every montht there is somthing that i need to pull out for and with having 2 young kids it is not easy, im also saving on my own...
any advice would be great.

thank you

dtsazza

rainbow90 wrote: »

I have the opportunity to take a further £5,000 interest free over 4 years which will be about £103 (ish) per month. In your opinion should I take up this offer? I have to take it up before end of September as it must be within first 12 months. I hope to have a house before those 4 years are up so I would appreciate the savings boost (plus the morale boost of seeing the % rocket). Or do you think it would be better just to save up what I can each month and avoid taking the extra £103 a month hit?

It will depend to some extent on your discipline.

From a purely financial perspective, there is no reason not to take a 0% interest loan which doesn't show up on credit searches (I'm assuming that last part holds). Even in a particularly uninteresting scenario, you could stick it in a 3% instant access savings account for the 4 years, and end up ~£300 up. And you're not really taking a £103 "hit" each month, because in the worst case you can withdraw £103 out of the savings to cover it.

The only possible drawbacks to this would be misusing the money somehow. Either by blowing it on a holiday/cars/gambling/etc. and being stuck with the repayments, which it really doesn't sound like you're do. Or by being tempted to overstretch; to forget that the £5k in your account is balanced by a £5k liability, and acting as if you were actually £5k up. There might be a tendency to overstretch yourself; to put that £5k into an illiquid asset (like, oh, say, a house ) yet not actually be able to cover the £103 payments easily, or to liquidate the loan to cover them. (That said, I don't think it's particularly likely, and you come across as sensible enough not to put yourself into dire financial straits like that.)

It really comes down to psychology in the end. Do you think you would feel happier about having the £5k boost up front, but then £103 less saved each month? Or would the higher "velocity" of no lump sum and larger monthly savings feel better to you? As above, the first is slightly better from a purely financial perspective, but it's not a huge difference in the grand scheme of things. And quite possibly a positive attitude will energise you to put more "extra" money aside than you'd have got in interest, if you see what I mean.

nat21luv

dtsazza wrote: »

it will depend to some extent on your discipline.

From a purely financial perspective, there is no reason not to take a 0% interest loan which doesn't show up on credit searches (i'm assuming that last part holds). Even in a particularly uninteresting scenario, you could stick it in a 3% instant access savings account for the 4 years, and end up ~£300 up. And you're not really taking a £103 "hit" each month, because in the worst case you can withdraw £103 out of the savings to cover it.

The only possible drawbacks to this would be misusing the money somehow. Either by blowing it on a holiday/cars/gambling/etc. And being stuck with the repayments, which it really doesn't sound like you're do. Or by being tempted to overstretch; to forget that the £5k in your account is balanced by a £5k liability, and acting as if you were actually £5k up. There might be a tendency to overstretch yourself; to put that £5k into an illiquid asset (like, oh, say, a house ) yet not actually be able to cover the £103 payments easily, or to liquidate the loan to cover them. (that said, i don't think it's particularly likely, and you come across as sensible enough not to put yourself into dire financial straits like that.)

it really comes down to psychology in the end. Do you think you would feel happier about having the £5k boost up front, but then £103 less saved each month? Or would the higher "velocity" of no lump sum and larger monthly savings feel better to you? As above, the first is slightly better from a purely financial perspective, but it's not a huge difference in the grand scheme of things. And quite possibly a positive attitude will energise you to put more "extra" money aside than you'd have got in interest, if you see what i mean.

x x
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Dreamer80

Hi,

Finally hit the £14k mark so 70% of the way there

Really hope to buy this year!!

Happy saving guys,
D80

rainbow90

dtsazza wrote: »

It will depend to some extent on your discipline.

From a purely financial perspective, there is no reason not to take a 0% interest loan which doesn't show up on credit searches (I'm assuming that last part holds). Even in a particularly uninteresting scenario, you could stick it in a 3% instant access savings account for the 4 years, and end up ~£300 up. And you're not really taking a £103 "hit" each month, because in the worst case you can withdraw £103 out of the savings to cover it.

The only possible drawbacks to this would be misusing the money somehow. Either by blowing it on a holiday/cars/gambling/etc. and being stuck with the repayments, which it really doesn't sound like you're do. Or by being tempted to overstretch; to forget that the £5k in your account is balanced by a £5k liability, and acting as if you were actually £5k up. There might be a tendency to overstretch yourself; to put that £5k into an illiquid asset (like, oh, say, a house ) yet not actually be able to cover the £103 payments easily, or to liquidate the loan to cover them. (That said, I don't think it's particularly likely, and you come across as sensible enough not to put yourself into dire financial straits like that.)

It really comes down to psychology in the end. Do you think you would feel happier about having the £5k boost up front, but then £103 less saved each month? Or would the higher "velocity" of no lump sum and larger monthly savings feel better to you? As above, the first is slightly better from a purely financial perspective, but it's not a huge difference in the grand scheme of things. And quite possibly a positive attitude will energise you to put more "extra" money aside than you'd have got in interest, if you see what I mean.

Thanks for the advice, I think I will take it. I had planned to put it into an ISA so I definitely wont spend it. I would be taking it solely for house deposit savings. I am hoping to start looking to buy while saving up fees at the end of 2014 so it would be a nice savings boost towards that target, especially as OH cant save anything at the moment.

andrea1968_2

kirstycobie wrote: »

well done to everyone who has managed to save somthing.

please tell me your secret, i have been saving for 11 months now and have a grand total of £450!!!!!!! think ill be a granny by the time i save up £20k (im 29) every montht there is somthing that i need to pull out for and with having 2 young kids it is not easy, im also saving on my own...
any advice would be great.

thank you

We have literally been out about 4 times in the last 2 years. We got to the stage where we decided drastic action was needed and we have basically gone to work, done as much ovetime as possible and our nghts out have turned into weekend walks in the country with packed lunches instead of £100 night out with drinks curry and taxis and me having something new to wear.

Admittedly not having children makes a big difference but watching the pounds in the bank start mounting up gives you a real buzz. Stick at it and the balance will start growing into something much healthier.

Can't believe I'm about to become a home owner :j

andrea1968_2

Almost 2 years to the day that I became debt free we've had our mortgage offer approved and can start the frightening process of actually buying the thing that for me was the impossible dream.

To say I'm happy is a bit of an understatement but I'm so proud of what I've acheived after being in debt for most of my adult life. Hard work does pay off and it makes it all the more sweeter.:j:j