Funkstain wrote:

I mean, no, I'm not - I just recognise the frustration of trying to find a worthwhile savings mechanism for my limited funds, and am fairly confident in the fruits of my research. In my experience and view, there is nothing to be wary of, and it absolutely supports the idea of infrequent irregular savings

I knew you weren't, just joshing with you.

*sighs loudly*

*possibly adds a "harrumph"*

Funkstain wrote:

I mean, no, I'm not - I just recognise the frustration of trying to find a worthwhile savings mechanism for my limited funds, and am fairly confident in the fruits of my research. In my experience and view, there is nothing to be wary of, and it absolutely supports the idea of infrequent irregular savings.

there doesn't seem to be anything to feel guilty about. Most people look at savings accounts / ISAs and go "what's the point of that?" when they offer 1% APR at best. The other options, mainly investment funds, are absolutely not for short term liquidity, and everything else looks like a scam.

As usual the apparent complexity is masking simplicity

Tempy, put a third of your money in this, a third in an ISA. Leave a third for contingencies. Review after 3-6 months.

I have a current account that pays 5% as long as you pay £1000 into it each month. I just use it as a savings account. 1000 in on the day I get paid, 1000 out the next day. Then I just top it up with whatever I can spare each month for savings.

Wait from whom is this available? Only one I can find is Nationwide, 5% limited to one year only and £2,500

Nationwide gave me an extra year on that for some reason, but I'm back to peasant rates now.

We swap bank accounts every year. It's easy with the Switch thing, and between us it's £200-£350 cash.

Starling’s business account. If you’ve set up a limited company, you can set up a Starling account very quickly for free. Each person with significant control over the business can access the shared account. Transactions are free which is very rare in the business account world. You get a debit card if you need one. You can also set up accounts in euros and dollars if you go international.

I've been using them for over a year, and have been so impressed I've moved my personal banking to them as well (and recycle high st accounts for £bonuses).

Are you going to be trading as a ltd company? It would probably make your accounting a lot easier, depending on a few factors.

personally I think the only real benefit of registering is if you get a VAT rebate. For example as a contracter I could charge VAT on my time at 20%, yet being as I was a developer for the first two years I only paid VAT at 12% which basically meant I could claim that 8% difference back on anything I bought to help the business along with standard allowances. If you;re at the point where the app is out and about to make money, it seems madness to register, as your spending has finished

Thanks for the great advice and info chaps. Very useful and have passed on to the team.

Go North.

Try and have as little a loan to value (what you're borrowing vs the value of the property, essentially as big a deposit as you can) as possible. You will likely get a better interest rate that way.

Also, leave room for contingencies in the monthly repayments. If you go for the max you can afford then any unplanned expenses or drops in income will hit hard. That also allows you to make overpayments (depending on your mortgage) when you're flush, which can knock thousands off the cost of your mortgage over 25 or 30 years.

I guess you have used the online calculators that most banks have on their sites. If not that is your first stop to see an estimate of what you can borrow based on your combined salaries and any outstanding debts like loans.

At that point you can look around at sites like Right Move.

Eventually you will want to speak to a mortgage advisor/broker. I recommend trying to speak to someone not tied to a bank as they will be able to look at a broader range of mortgages for you and get the best deal.
Most estate agents will have an advisor and will likely hassle you to speak to their advisor before they listen to offers on properties. In fact they will want you to have an agreement in principle before you make offers.

An agreement in principle is just that. You have passed the basic tests and the bank will sign on for a certain mortgage providing your circumstances dont dramatically change. These normally last 3- 6 months.

I would try to book in with an advisor first.

In the mean time you should look to get your accounts in order.
They will do an affordability test based on 3 months bank statements so try to make them look good. Try not to have lots of little transactions like lunches or rounds in the pub.
Pay off any debt you can without dipping into your deposit.
They will also want to see proof of deposit, so a bank statement from where ever that is stored (ISA, savings account etc)
They will also do a credit check. Not much you can do here but worth knowing.
They may ask you to take certain insurances as well, certainly property insurance but sometimes loss of work insurance depending on circumstances.

In terms of mortgage type you have repayment or interest only. Repayment means you aim to pay off the debt. Interest only is just that, you only ever pay the interest on the mortgage. I believe interest only needs to be secured against something else, it's also expensive and not really what you want.
So you will be on a repayment mortgage.

From there you have fixed rate or tracker mortgages. Trackers follow the bank's variable interest rate, you dont want that as it is always more.
Fixed rate sets the interest rate for a certain term, normally 2 years but can be more. At the end of that period you either switch to another fixed term or automatically move to the bank's tracker rate.

Once your mortgage offer is made, then you browse properties, make an offer, have it accepted it is solicitor time. You can source your own or estate agents can recommend one they partner with. Your solicitor should then handle most things between you, the seller's solicitor, the bank and the estate agent, although you may need to kick them up the arse now and again. During that period you may be asked for fees for certain things and at the end you will get a bill and wonder how standardised paperwork costs a couple of grand.

Oh about mortgages, sorry. Dunno, different country and all that. I got a fixed rate for the life of the mortgage, so the monthly payment never changes at all. Not sure how available that is elsewhere though.