Independent Financial Life Planners Bishop's Stortford: How to raise a deposit for a home

Wednesday, 20 November 2013

How to raise a deposit for a home

Enable's Independent Financial Advisors in Bishop’s Stortford know that even if you are saving regularly and well with interest rates on savings accounts constantly low, it is very hard to see that saving grow with any speed, some savers are turning to the stock market to see if they can raise their deposit more quickly.

Even though help to buy has made some mortgages more available to first-time buyers there are many good reasons to save more before you start looking. You might prefer to save more before you start house hunting because a larger deposit will give you a greater buffer against negative equity should the property prices fall, and more of a deposit will give you access to much better mortgage rates.

But at Enable we know how hard it is , "Since the launch of the funding for lending scheme to help kick-start the mortgage market, savings rates have plummeted to record lows, and not a single savings account has been left untouched," says Charlotte Nelson, a spokeswoman for Money facts. Its data shows the average easy access savings account interest rate has fallen well below inflation (2.9%) to just 0.67%, down from 1.09% just one year ago. After tax, your savings are earning next to nothing, and to build up £34,000, a 20% deposit on a £170,000 house (the average price according to Halifax's index) you would need to save around £560 a month if you wanted to buy in five years' time, or £280 a month to buy in 10 years' time!

Many feel a decade is too long to wait and some are turning to the stock market as a quicker way to try and build up a pot. However, investing comes with risks which have the potential to push your dream of buying even further out of reach. If you are considering looking at this option Enable's IFA’s can help you consider your options and assess the risk.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.