The 'We're saving for a deposit' thread

eviekins

I'm also just saving as much as possible!
Unlike alot of people, I've never had a deposit target in mind.
I look on rightmove everyday, but I'll be buying when the times right/when I see a house I love, not just when I've got a certain figure in the bank.

Update on my last post - I did go ahead and treat myself a tiny bit for hitting a saving milestone, but still over 60k in the savings pot afterwards! Woohoo!

[Deleted User]

You can have a guestimated target, then when you're nearer to reaching it refine it up/down.

either a) estimate how much you can comfortable afford to save each pay day, and calculate how much you should have in a year if you did stick saving that amount each month - then review after the year is up.

or b) look on rightmove/net house prices and see what the cost would be of a suitable property in your chosen area and work out how much of a deposit you would need (Have a look at money supermarket etc of cost of mortgages depending on Loan to Value, and look at several mortgage calculators to identify how much you could realistically afford to borrow on your income - 5%, 10%, 15%, 20%, 25% etc) and then set a goal based on that. Then see (based on what you can afford to save each month) how long it will take you to get there.

or c) a combination of both.

HTH,

D9

Simon11

I'm also in the same boat, I'm trying to set a target but unsure how much I need. I'm hoping to purchase a place in London, a two bed for around £250k.

What makes my situation slightly difficult, is that I already own a property and wish to keep this, due to the long term investment potential. Its worth around £130k with a deposit of around £55k. After all bills, agent fees, insurance, mortgage & taxes, I make around £250 each month. Would having this property make it harder to purchase a second home?

My current thoughts are that I should save £50k, which gives me a 20% deposit?

johannalf88

We have just hit over 50% of our target! Yay! We are only saving for a 5% deposit, because of the ridiculous prices where we are, but it is still a hell of a lot of money! :money:

We will be looking to take advantage of the 95% mortgages, affordability shouldn't be an issue so we will keep on saving.... :T

sky_bloo

Hi all we've just started making steps towards buying and saving every penny. We're making the most of low rent and saving as much as we can. Hopefully aiming for a 15% deposit and our highest price will be about 90k as house prices are quite stagnant in this area. Already have 7.5k saved so hoping to have enough saved by next Easter. :j

tara747

TBH, I dream of buying a house for cash someday, if prices keep falling here.

[Deleted User]

tara747 wrote: »

TBH, I dream of buying a house for cash someday, if prices keep falling here.

Lucky you! they are rising here

eviekins

They're rising for me too!
What sort of house prices are you looking at Tara?

J_i_m

I'm probably banking only £600 this month, which considering my present situation is actually better than I would have expected. It'll bring my total up to about £14230.

I have elected to direct some funds towards investing in myself aimed at my employability and future income. At the moment I am unable to focus entirely on saving due to some rather heavy predicaments to do with work and career.

Taking a positive look at it though, I am over half way to meeting my target savings. I already have enough for a 10% deposit and fees on my target property value. I'm still aiming at a 20% deposit though to give a better mortgage rate or flexibility in property value I go for. And I am close to maxing out my ISA for this financial year.

I just hope that I won't need to use my savings to live on.

tara747

Domino9 wrote: »

Lucky you! they are rising here

Where are you?

The BOE has stated that IRs are likely to go up in the next year or two - I actually think that there is some economic and currency trouble coming down the line, so expect emergency rate rises before then. Followed by another downward trend for house prices.

eviekins wrote: »

They're rising for me too!
What sort of house prices are you looking at Tara?

Depends! I'd like a nice house in a nice area, obviously. And I could get a decent one in a nice area near me with a 5 year mortgage at present (price about £115,000 so a £40,000 mortgage). I live in NI, house prices have fallen by 60-70% here and show no sign of reaching the bottom yet.

Thing is, I'm not sure where I want to settle down, so for the minute I'm more than happy renting while my savings increase.