corsaaa_16v
Member
Registered: 8th Feb 06
User status: Offline
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Me and the misses are looking to open a joint savings account to save up for the house deposit
My initial thought was that we would simply search for the joint account account with the best AER but having thought about it, I am now thinking it may be worth going with a bank/provider that we may be getting our future mortgage with as we may get preferential rates for being an existing customer when it comes to making the mortgage application?
I know HSBC offer very good mortgages for first time buyers on a 10% deposit basis but only to existing customers but their joint savings account only pays out 0.05%. Compared with the 3% offered by other providers on joint savings account who are non-mortgage providers or dont offer as good a deal on mortgages
Just wanting some advice on how people think would be the best way to go about it? The plan is to save as much as possible in the next 6 months. We then intend to rent for 12 months (to get an idea of the cost of living, food, bills, etc) and leave the amount we have saved in a savings account which we will top up on a monthly basis. After that, we will then look into getting a mortgage and buying our own place.
Any advice would be muchos appreciated 
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Cavey
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Registered: 11th Nov 02
Location: Derby
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You'll be saving for 18 months or so, a mortgage will be for 35 years or so, with probably the best offer rate for 2/3 years.
I'd go with whichever you feel would be the best mortgage rate.
Savings are pretty shit everywhere at the moment, and unless you're putting a lot in, for a longterm thing, you're not going to get too much in interest anyway.
Say £10k in a year, 3% is £300, 0.05 is going to be £5? - Sounds a fair bit difference, but if you're getting 1% less on a mortgage deal you'll probably make that back in a year?
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Sam
Moderator
Premium Member
Registered: 24th Dec 99
Location: West Midlands
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Why can't you both just save individually?
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AndyKent
Member
Registered: 3rd Sep 05
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I wouldn't worry about the interest rate being offered at the moment either. Whilst you're starting out theres sod all to earn interest on.
All accounts gradually drop their rates anyway, so given a couple of years you'd need to change to get something worthwhile again anyway.
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Daniel_Corsa
Premium Member
Registered: 21st Apr 04
Location: Wigton, Cumbria
User status: Offline
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We set up a specific home saver account!
Was 2.2% interest with max of £1,500 per month!
We tried to put in 250-500 in each per month!
Soon adds up!
Just look around your local building societies rather than big banks!
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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As said dont focus too much on the interest rate, until you get to large sums the %'s just dont make any real difference (having said that it would be good to get an interest above the rate of inflation so your money isnt actually losing value while sitting in an account  )
Your plan of to do it seems sounds and reasonable - no need to have joint savings (not sure if you can open joint isa's) but you each have separate tax free allowances so might as well use it as much as possible!
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