Multiple savings accounts to save up for mortgage?

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Has anyone done this? We want to be on the property ladder in over 12 months. We already have a big chunk together but need to raise a bit more. Recently got myself a part time evening job aswell so we’ll have over 2K a month to save.

Are multiple savings accounts worth it and easy to manage? Do mortgage providers frown at multiple savings accounts?

I’m confused as to why you need multiple accounts? Can’t you put all your dosh in one place?

No, because there’s a limit to how much you can put in a month. It’s £200-£500, and I’ll have more than that.

Being an old gimmer, I go back to the days of mortgage queues so our savings were scattered around a few building societies/banks to increase our chances of getting a mortgage from one of them! It wasn't any problem then.

As you are limited as to what you can put in, is this because they are ISA's (in which case there may be a limit) or an account that gets bonus interest depending on how much/how long you save?

Good luck with the saving, OP!

Yes, as long as you are both first time buyers you can get a LISA each.

Put up to £4000/year (I believe that's the correct amount) and you'll get 25% extra on top of that from the government.

Means you can both get the bonus.

Do you mean regular savers so you save (for example) £250 a month for 12 months for a fixed interest rate? As far as I know, you can have one per provider and it wouldn't make a difference to a mortgage because there's no credit involved, just regular payments in.

I and my partner have a few of these with different banks/building societies and once set up, they toddle along nicely for the year with no further effort.

Have a look at moneysavingexpert.com.

This is how my partner is buying his house right now. He's quite savvy and calculated he would get better deals with his savings spread across 4 savings accounts. They just rotted up the total deposit and stuck the number in the calculator, they weren't fussed it was spread over multiple accounts because they all had proper statements showing him depositing monthly so it was clearly all legit good luck with it all

If you haven't got a Help to Buy ISA or Lifetime ISA, have a look on MSE as the guide will tell you which one it's worth getting if you plan on buying within 12 months (if it's worth opening one at all)

Its worth it if that will give you the best return on the savings. Make sure you don't use any that will lock your savings in past the date that you want to access them.

You will also need to provide statements of each account to your lender and conveyancer.

because there’s a limit to how much you can put in a month

Get a savings account without limits. You need an account to suit your purpose, not to be having lots of different accounts. If you are going to the effort of opening more accounts why not just open one that does the job?

It's fine. It actually shows financial savvy, assuming you're doing it for better interest rates.

Sorry that does bring a different slant on things. OP said they would be doing it because of deposit limits on their existing account. If you want to do it because you have expected the best interest options and account deals then it's not a bad idea, but if it's simple because if the reason you gave OP then don't waste your time.

I think she means 'monthly saver' accounts - better interest for regular deposits but with upper monthly limits.

I use these accounts, I normally have two, but we bank with both providers anyway.

I find them handy, they are just sitting there and give me more interest than other accounts.

As long as you know you can't access the funds I would go for it.

You can each get a lifetime ISA and get a bonus for whatever you can put into it (won’t be a huge amount in 12 months due to monthly limits). Take advantage of the best rates you can get, however you can get them

Are you doing the help to buy ISA?

I don’t understand the help to buy ISA. It only lets you deposit 400 a month max. To get 12k savings and get the 3K government help, I’ll be saving for 60 months. So it’s useless if you want to buy quickly.

I’ll probably look into a saving account with no limits. I have no idea about banks. Do these even exist? Off to google

Savings accounts with no limits do exist, but the interest rates on them are rubbish

Right you want to put 4k a year in a lisa account, this will be topped up by the gov by 25% percent so you know have 5k.

I would then suggest using the remaining 16k isa limit and putting the cash in a few cash isas, you could probably find one with a decent interest rate. You don't want a stocks and shares isa as you're not saving for long enough to ride the market if it dips.