First Time Buyer - Savings accounts?

Financial Chat
1

I’m currently looking at buying my first home in the next 3-5 years. I’m a bit late to the party at my age of 23 but I feel like its time to start shaping up my financial behaviour. The cost of living is going through the roof and I have a fear of private renters just “kicking you out” whenver they want.

So the only place forward from my current Council place is to buy. I am trying to find the best place to start building up a deposit. I’m looking to try and save up around £15,000 from nothing. What would be the best place to start saving? - I plan to set aside around £600 per month for the next two years to reach this deposit.

2

Have you opened a Lifetime ISA? The government gives you a 25% on up to £4k a year in deposits.

A few providers have them - but it depends if you want cash interest or stocks and shares.

3

I was lookng at the Nutmeg one

4

I’m looking at the same! It’s definitely worth having one!

5

Am I right in saying you need to put £4k in each year to get £1000 off the government?

6

No!

They top up as you do, so if you put in £10 - they’ll add £2.50. No need for the max, but it’s worth it if you can!

Edit: It’s paid monthly, according to Nutmeg.

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8

You’re not late at 23, believe me.

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9

I feel like I am lol. Priorities in the wrong place when your younger

10

Granted i’m younger than you, i know plenty of people who didn’t get their life in order until their mid-30s!

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11

23 is not late by any stretch!

Check the HTB ISAs as they do/did have a £250k limit for your first purchase. So if you’re above that, you don’t get the bonus.

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12

nowt wrong with a council house btw :slight_smile: and as far as im concerned your quite young i was still making finacial mistakes in my 30s and 40s thankfully im ‘grown up’ now in my 50s just make sure your plans are affordable esp just now with the cost of lviing crisis which is really only just started

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13

You’re not late at all. I bought my first house at the young age of 38.

And I must say that we did use a LISA with lots of free govt money too, if you really plan to buy a house and you can manage your finances well so you put into your LISA the max. you can afford to put away for a house deposit, and only that (i.e. don’t put all your disposable income in it if you think you will need it for unexpected expenses, holidays, medical etc), then you’ll be fine and grateful when the time comes and your money has been topped up by 25%.