Mortgage saver plan   

Buying a home requires planning. Property prices continue to rise, and potential home buyers are faced with seriously low supply levels. In addition, first time buyers are often paying high rents making it more difficult to save for a mortgage.

Although getting on the property ladder might be challenging given the current conditions, it is still achievable. A well-thought-out financial plan based around sound saving can get you closer to turning your dream into a reality. Although you may have to save for longer than you might have previously to accumulate the funds necessary to put down your first deposit, taking a smart saving approach can help you achieve your saving goal.

Cash in the bank is considered to be safe from the risk of investment markets but deposits can pose a challenge when it comes to saving for a milestone event, such as saving for a mortgage. Your money just can’t grow fast enough if it’s on deposit.

While savings on deposit will give you a predictable, low rate of interest, you only get a little extra on top of what you put in. But when you invest your money in a fund, that little extra on top, can become a lot extra. Funds aim to grow your savings faster than interest rates offered by regular savings on deposit.

Funds are riskier investments to money on deposit in banks and so have the potential of much higher returns, but your investment could go down as well as up.

Cash is considered safe because the amount of money in your bank deposit will never fall. However, the value of your money on a bank deposit can fall. This happens when inflation is high. High inflation means the price of goods increase. So, if you have money saved in a bank and have it ear marked for a future purpose, high inflation could mean that when you go to spend the money, the item that you are purchasing may be more expensive than what you put aside for it. Therefore, investing in funds is a common strategy used to ensure your money is not eroded by inflation.

An alternative to keeping money on deposit for a long period is to consider an investment bond or a regular savings plan with a pension and investment provider. 

When your savings are invested in a Zurich fund, you have the potential to reach your savings goal. And with our Regular Savings plan, you can save from as little as €100 per month to potentially grow your investment.

You can invest a lump sum in addition to saving and investing regularly each month. In the following paragraphs, we will explain how to work out how much you can afford to set aside each month, and how you can invest a lump sum.

At Zurich we have a range of funds to suit whether you’re a regular saver, lump sum investor, or both.

You can watch your savings grow over time by putting an amount away regularly in a Regular Savings Plan. Your savings are invested in a range of investment funds depending on your risk profile.

The Investment Bond for lump sum investors is suitable if you have a lump sum of money to invest, such as an inheritance or existing savings. Your money can be invested in Zurich’s range of investment funds including the risk rated Prisma Funds.

If you have a lump sum to invest and would like to continue to make regular contributions over time, Zurich’s Special Savings Plus plan offers you the best of both worlds.

This plan will appeal to people who wish to:

• Save on a regular basis to build up your savings for a mortgage.
• Save from as little as €100 per month.
• You are prepared to invest your mortgage savings into a Zurich investment fund for at least seven years before purchasing a house. While this is the recommendation, you can take your money out prior to this if necessary.
• If you need access to your money, that’s no problem as there are options available that give you access to your money without any penalties. However, it’s important to note that if you access your funds early there may be less money in your fund than you had anticipated as your fund needs time to perform well.
• You can keep track of how your savings are performing at any time by logging on to Zurich’s online Client Centre.
• You have the option to vary the regular payments if required, and to make a once-off lump-sum injection.
• You can switch and move between a range of investment funds, subject to certain charges.

Firstly, you need to decide what your mortgage savings goal is and figure out how much you need to put away each month. Use our budget calculator to find out how much you can afford to set aside each month, or if you’re aiming to save a 10% house deposit amount, the budget calculator will help you work out how much you need to save each month to achieve that goal.

Once you have figured out what your mortgage savings goal is, get in touch with a Zurich advisor or find an advisor near your to enquire about Zurich Regular Savings. The advisors can help you decide which funds to invest your savings in to achieve you goal.

Then, all you need to do is start saving and look forward to your new house.

We have prepared a brochure to help you take a look at the potential growth of your mortgage savings if invested in a Zurich Prisma Fund. Learn how to boost your house deposit with Regular Savings from Zurich.

Savings Plus Key Information Document (KID) is a good source of further information on this product.