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Saving for my 1st house
will369
Posts: 527 Forumite
Hi guys,
I am looking to save for a house over the next 3 years. I am not sure how much I will be able to save. I am hoping to save £12,000 a year. So in 3 years I will have over £30,000.
I don’t know whether I will use the government help to buy scheme or just a straight forward deposit. I know £30,000 isn’t a lot, but it is what it is. I may need to save for longer. But by then I may of come into some inheritance or won the lottery, you never know lol.
I am 26 years old, and more than likely will be buying by myself.
My question is, what bank and what type of savings account is best for me? I don’t want to touch it. Any suggestions? Do I need a straight forward ISA account?
I am looking to save for a house over the next 3 years. I am not sure how much I will be able to save. I am hoping to save £12,000 a year. So in 3 years I will have over £30,000.
I don’t know whether I will use the government help to buy scheme or just a straight forward deposit. I know £30,000 isn’t a lot, but it is what it is. I may need to save for longer. But by then I may of come into some inheritance or won the lottery, you never know lol.
I am 26 years old, and more than likely will be buying by myself.
My question is, what bank and what type of savings account is best for me? I don’t want to touch it. Any suggestions? Do I need a straight forward ISA account?
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Comments
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Open a LISA... now...
Government will top up contributions by 25%, so your £12,000 a year will be £15,000 plus interest0 -
P.S. How on earth isn't £30,000 "a lot"? Where do you live?
That's more than half my mortgage...0 -
....but since the contribution limit is £4K per year you can't get more than £1K government bonus per year.armchaireconomist wrote: »Open a LISA... now...
Government will top up contributions by 25%, so your £12,000 a year will be £15,000 plus interest0 -
armchaireconomist wrote: »Open a LISA... now...
Government will top up contributions by 25%, so your £12,000 a year will be £15,000 plus interest
How can I open one of these?
I live in Exeter, Devon.
I am looking to buy a 3 bedroom house. A new build.
Not sure if 30k is enough?0 -
My bad! Thanks "eskbanker". £4k a year into LISA and stick the rest in a fixed savings account.0
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armchaireconomist wrote: »My bad! Thanks "eskbanker". £4k a year into LISA and stick the rest in a fixed savings account.
Not a good idea.
will369
have a read:
http://www.moneysavingexpert.com/savings/which-saving-account
and come back with any questions0 -
"Saving for my 1st house"
"I am looking to buy a 3 bedroom house. A new build."
Why not look at something older? Yes, it'll be all shiny and new but also often inferior quality, without character and price-wise often more expensive & volatile.0 -
I personally have a stocks and shares LISA. I am on target to putting in £4000 a year, i will get my 25% at the start of the next tax year and hopefully an extra boost on the shares side of it. But my thoughts were, even if the stock does reduce i will have that 25% bonus to act as a buffer.
If you think that stocks and shares are too risky there is a cash LISA available which offers a 0.5% interest rate + your 25% government bonus on your deposits.
So it is worth it for the extra boost for buying a house. You would have to check when buying a house if you could put down your LISA savings + your extra savings (as you intend to save more than the £4000 limit) into one big deposit. I would think this would be allowed but its always good practice to extra check. Perhaps sending one of the LISA providers an email would get you a sure answer.
But to answer your question. I would definitely open a LISA for buying a first home.
Hope this helps!
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For short term saving for house deposit, I would stick to a cash LISA. You get the 25% bonus with a cash or S&S version so seeing it as a buffer to cover stock losses shouldn't be a consideration.
Chris.0 -
It depends where you are in the country. The average deposit of a first time buyer in London is more than 90k.armchaireconomist wrote: »P.S. How on earth isn't £30,000 "a lot"? Where do you live?
That's more than half my mortgage...
National average is 32k.0
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