How we helped Noah get on the property ladder How we helped Noah get on the property ladder
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How we helped Noah get on the property ladder

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by Jamie Phythian
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Noah recently heard about us through his HR department. After being introduced, it wasn’t long before we got him on track to achieving his goal of getting on the property ladder.

Noah is 29 and currently works as an architect in Newcastle.

After 10 years of renting and going back to his mum and dad's, he felt now was the time to do something more with his money. He fancied a bit of a project, buying a place of his own and putting his stamp on it.

financing a new house

Noah was already working hard towards his £20,000 property deposit, saving £600 monthly:

But we soon realised that he hadn’t quite factored in all of the money needed to buy his first home...

Noah hadn’t taken into consideration the cost of things like legal and land registry fees.

And trust us, these can add up.

 

How we helped

Noah was originally hoping to get his £20,000 property deposit in February 2020. Here’s how he can achieve it about 4 months faster with an extra £4,500 saved up.

All he has to do is adjust how he uses his £600 monthly savings and it’ll have zero impact on his lifestyle.

Our solution

Use up the LISA allowance:

  • Noah wasn’t using the full £4,000 allowance. As he could afford to, (he was saving more than that elsewhere), Noah was missing out on the £1,000 government top up.
  • We worked out that he could get 3 years of LISA contributions in just over 2 years because of how the tax years work. That's £3,000 of free money towards his first property!

Put the rest into his easy access saver:

  • The LISA alone couldn’t do all of the work, so we used this account to fill the gap.
  • He wouldn’t get loads of interest, maybe £100 or so, but this money will still be useful.

saving for a new house

By November 2019, Noah will have around £24,500 saved up!

This would give him...

  • £20,000 for his property deposit
  • £1,500 for legals, search fees and land registry
  • £3,000 left over as a backup (buying a property can throw a few curveballs!)

 

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Posted: 15/08/2017

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