Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Rich12533
    • By Rich12533 9th Nov 18, 10:23 PM
    • 2Posts
    • 0Thanks
    Rich12533
    First time buyers
    • #1
    • 9th Nov 18, 10:23 PM
    First time buyers 9th Nov 18 at 10:23 PM
    Hi everyone,

    New to the site and looking for a little advice. My wife and I have saved £30k for our first house deposit. Currently, I am waiting to be relocated with my job, however I do not know when that will be 6 month-18 months so we are waiting to buy.

    I want to optimise our savings. I listen to Martins BBC podcast this week which talked about LISA and Help to buy ISA. My thought process is to opened a LISA each and put £1 in. Hopefully by April 5th I might have some more info on my relocation. Put £4k in each LISA pre April 5th and another £4k each after April 7th if I have info relocation will be a year after opening the accounts. Do you agree with this approach? (I understand H2B isa is more flexible, but LISA offers more reward) Also, if we buy a house 12 months after opening the account and its only been 9 months since depositing the 2nd £4k do we still get 25% or is it pro rata?

    Any recommendations on what to do with the other £14k would be welcomed. (Currently in flexi saver earning 0.2%!!!)

    Thanks in advance.
Page 1
    • Zorillo
    • By Zorillo 9th Nov 18, 10:41 PM
    • 427 Posts
    • 280 Thanks
    Zorillo
    • #2
    • 9th Nov 18, 10:41 PM
    • #2
    • 9th Nov 18, 10:41 PM
    Your plan makes sense and you'd get the full 25% on both deposits so you'd have £10k plus interest to use after the account had been open one year.

    It's stating the obvious, but if you have opened the account with £1 you can only put a further £3999 in prior to April 5th.
    • kidmugsy
    • By kidmugsy 9th Nov 18, 10:47 PM
    • 12,097 Posts
    • 8,541 Thanks
    kidmugsy
    • #3
    • 9th Nov 18, 10:47 PM
    • #3
    • 9th Nov 18, 10:47 PM
    Any recommendations on what to do with the other £14k would be welcomed. (Currently in flexi saver earning 0.2%!!!)
    Originally posted by Rich12533
    Three FlexDirect current accounts at Nationwide and (if you are feeling brave) four current accounts at TSB.
    Free the dunston one next time too.
    • Alexland
    • By Alexland 10th Nov 18, 6:29 AM
    • 3,697 Posts
    • 3,023 Thanks
    Alexland
    • #4
    • 10th Nov 18, 6:29 AM
    • #4
    • 10th Nov 18, 6:29 AM
    Your plan makes sense and you'd get the full 25% on both deposits so you'd have £10k plus interest to use after the account had been open one year.

    It's stating the obvious, but if you have opened the account with £1 you can only put a further £3999 in prior to April 5th.
    Originally posted by Zorillo
    Really good point we had someone on the forum have their £4k contribution rejected in March as it put them £1 over the annual limit.

    Alex
    • george4064
    • By george4064 10th Nov 18, 8:00 AM
    • 1,044 Posts
    • 1,084 Thanks
    george4064
    • #5
    • 10th Nov 18, 8:00 AM
    • #5
    • 10th Nov 18, 8:00 AM
    Have a thorough read of this page which has loads of information on various saving/current accounts to earn interest on your money: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £12,427.51/£12,000 (104%)
    Save £12k in 2018 - #004 £5,529/£12,000 (46%)
    • Rich12533
    • By Rich12533 10th Nov 18, 8:15 AM
    • 2 Posts
    • 0 Thanks
    Rich12533
    • #6
    • 10th Nov 18, 8:15 AM
    • #6
    • 10th Nov 18, 8:15 AM
    Thank you for all the replies! I will start digging into some of the advice!
    • Wildsound
    • By Wildsound 10th Nov 18, 10:01 AM
    • 212 Posts
    • 150 Thanks
    Wildsound
    • #7
    • 10th Nov 18, 10:01 AM
    • #7
    • 10th Nov 18, 10:01 AM
    If your timescale to buy is over 2 years, then I would consider opening a HTB ISA as well to benefit from the highest cash ISA rate which will compound every year. When you come to buy the house, you would use the LISA to buy the property (thus not being hit by the penalty) and then you just close the HTB ISA at no penalty and just pocket the interest (you can't use both the LISA bonus and the HTB bonus at the same time per person)

    Otherwise, as said above, start looking at high interest current accounts and monthly savers.

    If you aim to buy is over 5 years, then consider a stocks and shares ISA, but that would need more research and I don't get the impression you are in this position anyways.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,310Posts Today

7,307Users online

Martin's Twitter