Saving hard for a first time home - any advice

[Bud01]

Hi all,

I have been working my way through the interesting threads on this site and I find myself in a muddle over my savings. I'm in a muddle because I am trying to balance between having good, safe and high interest accounts with also being with a bank that will give me a mortage over the next few years. Currently, I am saving at least 40% of my take home pay - the current affairs are making me very nervous and I have been considering about moving money abroad, but if I do that do I risk losing a track record with an Irish bank when it comes to asking for a first time mortage?


I have 30k in Rabo earning 2.25% (Moved it from AIB cause I thought it was safer). However, I have about 40k left in AIB in various accounts such as their Regular Saver, Online 7 day notice account and the Online Savings Accounts (which I think are a bit crap but allow me to top up to 1k with any extra money left over at month end). My AIB accounts concern me - but if I want a track record with an Irish bank for a mortage then I have to pick one of them to save each month with.

Any advice out there for a potential first time buyer who wants to make his hard earned money work and stay safe??

Cheers

 

[Lamorna]

Hi Bud,

I don't think the fact that your savings are not held with an Irish bank has much relevance, as long as you succeed in proving that the money is yours, and that you are not money laundering.

In France, we shop around for a mortgage, and where your deposit is held is quite irrelevant to the banks. In the UK I have the feeling it's the same: if you have a monthly direct debit set up from your current account to a savings account, the bankers can tell that you are not spending that money.

Unfortunately I can't advise you re safe savings/deposit accounts in Ireland. With the exchange rates going up and down, it's really difficult to invest funds in a different currency too.

One advice: once you have saved up enough to start viewing properties, if some of your deposit is held in foreign bank accounts, rapatriate it to Ireland before starting to make offers. I worked in a real estate agency, and although it was upmarket and we had clients from abroad, we really did not like it if they told us the monies for the purchase were currently in Switzerland or whatever. We were burnt once: the buyer, a friend of a politician from an African country, was money laundering... Don't walk into an agency with a suitcase full of banknotes either!

I'm really impressed that you manage to save 40% of your pay: well done!