The 'We're saving for a deposit' thread

tara747

November update from me:

I managed to save £753 last month - less than I'd hoped, BUT I booked a holiday for next year, which cost me over £600. So I don't mind too much.

My new total is £73,097. I realise that I'm not going to reach £75,000 by 31 December, but I'm ok with that. It's good to have a goal and try your best to reach it!

b0nz0

Hi :wave:

This is my first ever post

I have spent the entire morning number crunching and am so so excited that next year we can eventually start saving for a deposit for our own house! :T

Currently renting with Mr.Husband and our 3 kiddos and cannot wait to have a place to call ours once more and not have to worry about what we can and can't do etc.

The plan so far is to pay off our car. It's a 3 year loan with daft interest but unfortunately at the time the need to have one dictated the need for this. Anyway this was taken out in August so technically we have pretty much the full term yet but we can and will over pay it penalty free. If my number crunching is correct we can get it paid off by July 2014 and then the serious savings can begin! YAY!:T

Hoping to save £500 per month, if we can add more we will but we still want to be able to have some fun with our kiddos during the long slog. Thinking it will take 5-6 years to have a 25-30% deposit :eek: which is what we're aiming for. Hopefully it won't take this long as our last littley goes to school in 2015 so I can up my hours at work and hopefully fatten up the old pot.

Well, that's the plan so far, fingers crossed it works . In the meantime whilst paying off the car we're going to save anything leftover in the bank accounts at the end of the month to give us a little kickstart.

Looking forward to reading all of your tips and progress!

RoxieW

RoxieW wrote: »

Hi all

Thought I'd start one of these as it seems a lot on this board are in this position and I couldn't find such a thread. Sorry if there is one - please point me in the direction of it someone!

Not sure of the best way to do this, but thought it would be good to have a thread where we can state our goals, log our savings and encourage one another.

So, I'll start -

Hi I'm Roxie and I'm saving for a house deposit (titter)

We currently have a 50% shared ownership 3 bed semi that has (at the minute!) 20K equity in our share.

We want a whole house (lol) with 4 beds, an ensuite, a garage and utility. Basically, more living space all round.

We currently have nearly £11K in saving and are aiming to save £700 a month - although this has gone to pot recently as we've been doing abit of sprucing up in our current house. £700 is generally quite realistic IF we stick to budget. Thats just the problem I'm afraid! I chart my progress in my sig below.

Current savings portfolio

£6500 - ISA 1
£800 - ISA 2
£2000 - 10% reg saver (£200 month to be transfered to ISA on term)
£1250 - 10% regular saver (£250 a month to be transfered to ISA on term)
£100 premium bonds

total - £10650

Monthly I save like this -
£250 regular saver
£200 regular saver
£250 6% saving account - this is what I dip into if needs be.

We're planning to have another baby and will have to move when said baby is 4/5 as our 3rd bedroom is teeny. We're aiming to have 50K saved by then, which seems realistic. As we're planning another baby I'm basing my figures on just one income as I dont plan to be working until little one starts school.

My only worry is that the market will rise much more between now and then, rendering our deposit saving pointless.

Does anyone thin it would be worthwhile sharing SOA's as on the DFW board so point out to each other where any possible cutbacks could be made in order to save?

So that's me - anyone else care to join in?

Well, after starting the thread 5 years ago (and then not being very active due to the abovementioned baby no 3 and starting my own business) I'm over the moon to announce that we hit our goals above and today exchanged on our dream home. What seemed like a pipedream when I typed the above was achieved and we have ticked all the boxes on the new house that we wanted to. It really is perfect. Abovementioned baby will be 5 in Feb and has definitely outgrown his box room!

It hasn't all be smooth sailing. We put our current house on the market in January and the buying and selling process has been a very stressful nightmare. Alls well that ends well though - just the big move TOMORROW!

Just wanted to post, not only because I'm completely excited but also to say that it can happen.

tara747

Hurrah, well done RoxieW!!!! How much did you save in the end? :beer:

RoxieW

tara747 wrote: »

Hurrah, well done RoxieW!!!! How much did you save in the end? :beer:

Bang on 50k! 20% deposit

tara747

That's fantastic, congratulations I wish you all the best in your new home xx

debrag

So what are we looking at needing to get a property for £125k? wage/deposit etc


I aim for £30K by Dec 2021 (I'll be 40 just), starting to save from Jan 2015.

[Deleted User]

debrag wrote: »

So what are we looking at needing to get a property for £125k? wage/deposit etc

Take a look at some of the online calculators - the higher the deposit you have the lower the interest rate you will get on any borrowing. We opted for 25% as we wanted the best rates and although it took a long time to save, we felt it was the right option for us.

How much you can borrow will depend on many factors one of which is income.

How much you will need to borrow to buy a 125k house will depend on how big your deposit you have.

Try using this tool to get a ball park figure on what you could borrow based on your income - http://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing

The difference between what you *can* (these are just guide figures in any of these calculators, ultimately the bank you borrow from could offer more/less) borrow and house purchase price (125k) is the minimum you would need as a deposit (assuming that this is at least 5% of the purchase price - I don't think that there are any mortgages offering more than 95%, at least at the moment anyway).

HTH,

D9

debrag

Domino9 wrote: »

Take a look at some of the online calculators - the higher the deposit you have the lower the interest rate you will get on any borrowing. We opted for 25% as we wanted the best rates and although it took a long time to save, we felt it was the right option for us.

How much you can borrow will depend on many factors one of which is income.

How much you will need to borrow to buy a 125k house will depend on how big your deposit you have.

Try using this tool to get a ball park figure on what you could borrow based on your income - http://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing

The difference between what you *can* (these are just guide figures in any of these calculators, ultimately the bank you borrow from could offer more/less) borrow and house purchase price (125k) is the minimum you would need as a deposit (assuming that this is at least 5% of the purchase price - I don't think that there are any mortgages offering more than 95%, at least at the moment anyway).

HTH,

D9

thanks aiming for a £30k deposit which is just under 25% on a £125 flat, though that is prob the max we are looking at but then prices could all change by 2021 lol

[Deleted User]

debrag wrote: »

thanks aiming for a £30k deposit which is just under 25% on a £125 flat, though that is prob the max we are looking at but then prices could all change by 2021 lol

Don't forget that you will also need savings for solicitors, searches, (maybe) broker, moving costs etc. But so long as you don't go over the 125k you will not be required to pay Stamp duty - a penny more any you will have to pay stamp duty at the lower rate (1%).

Not sure if all this needs to come from the 30k - but even if it does, 20% deposit is still very good and will let you be able to access good rates (at least by todays standards).

Good luck saving.

D9