How much is required for a mortgage deposit now?

[g3org3y]

Of course gone are the days of 100% mortgages so realistically now what kind of deposit is expected.

I've heard around 40%. On a 150k property, that's 60 grand! That's a lot of money to save up with the 'overheads of life'.

I'm thinking of going down the house purchase route late next year (currently saving like a bh) and wondering if I'm being realistic.

A silly question as well - do house prices fluctuate during the year with a particular 'dip' in prices?

[Road Pest]

10% deposit but with high interest rates compared to 40% deposit.

[Sarnie]

10% as a minimum.

20% before you start seeing decent rates.

[MATTP77]

g3org3y said:

Of course gone are the days of 100% mortgages so realistically now what kind of deposit is expected.

I've heard around 40%. On a 150k property, that's 60 grand! That's a lot of money to save up with the 'overheads of life'.

I'm thinking of going down the house purchase route late next year (currently saving like a bh) and wondering if I'm being realistic.

A silly question as well - do house prices fluctuate during the year with a particular 'dip' in prices?

I too am in this predicament... I find myself working myself into the ground and grabbing as much OT as i can to make as much impact as I can on my savings account!!!!!

Fortunately I am looking to buy at home (Lake District - working in London at the mo) and this essentially just means that a 2 bed starter home is considerably less. Pretty confident i can buy a tidy little place for 125-130k. And i am NEARING my 25% deposit mark! But from quick little online mortgage quotes with banks and bsoc's i find you can still get - or at least get quoted on mortgages with minimal, minimal deposits - however you look to pay the price in interest rates.

Let us know how you get on!!

[scotal]

Whilst saving like a mad thing, remember to keep an eye on your credit score as well.
If you have a credit card, don't overuse it, and try to pay off balances, if you don't have any credit, get a card, but only use it for stuff you can pay off the same month, that will give you some payment history that the lenders can see. (As you've not had a mortgage before they obviosuly can't see that.)

In terms of house pricing dips throughout the year, there are times when sellers will be anxious to gwet a deal done. Pre-xmas, and in the summer when families want to move before school's start so they can get their kids in the right one spring to mind.
Personally I'd be keeping your eyes open all the time in case something suitable with a "motivated" seller comes along.

I've seen 3 ftb's lose houses recently through dithering. It may be different in your part of the world, but here there is competition fothe right property, so if you want a place don't fk about.

[MATTP77]

I must admit, i cancelled my CC as i never used it. Might be time to resurrect it from the bank and start buying menial stuff with it. I totally disagree with the fact you are penalised for NOT having to use a CC. Surely if you are not using one you are clearly making ends meet without the need for temporary credit......... ?

[scotal]

MATTP77 said:

I totally disagree with the fact you are penalised for NOT having to use a CC. Surely if you are not using one you are clearly making ends meet without the need for temporary credit......... ?

Yes, but, the lenders want to see a payment history. Obviously you won't have one for a mortgage, so they want to see if you are the sort of person that pays their bills.

CC's are one of the easily available (i.e its on your credit report) ways of them doing this.
ANd its a debt you can control. Whereas if you go and take a loan out that has a set term, then it will hit your affordability.
fked up, but then lending criteria are.

[bigandclever]

MATTP77 said:

I totally disagree with the fact you are penalised for NOT having to use a CC. Surely if you are not using one you are clearly making ends meet without the need for temporary credit......... ?

For some lenders, proof of a ste credit history is preferable, to them, than no proof of anything.

[g3org3y]

MATTP77 said:

g3org3y said:

Of course gone are the days of 100% mortgages so realistically now what kind of deposit is expected.

I've heard around 40%. On a 150k property, that's 60 grand! That's a lot of money to save up with the 'overheads of life'.

I'm thinking of going down the house purchase route late next year (currently saving like a bh) and wondering if I'm being realistic.

A silly question as well - do house prices fluctuate during the year with a particular 'dip' in prices?

I too am in this predicament... I find myself working myself into the ground and grabbing as much OT as i can to make as much impact as I can on my savings account!!!!!

Fortunately I am looking to buy at home (Lake District - working in London at the mo) and this essentially just means that a 2 bed starter home is considerably less. Pretty confident i can buy a tidy little place for 125-130k. And i am NEARING my 25% deposit mark! But from quick little online mortgage quotes with banks and bsoc's i find you can still get - or at least get quoted on mortgages with minimal, minimal deposits - however you look to pay the price in interest rates.

Let us know how you get on!!

It's hard work certainly!

I've just been offered a very decent Merc W124 coupe for a VERY good price but had to turn it down as I don't 'need' it. I love my photography but I'm really struggling to come to terms with spending proper money on lenses because I know that this is cash that should be in the savings account.

Wrt the credit cards. For some reason Barclays continue to have me down on a student account and a student credit card (max £500 limit!) despite the fact I graduated 3 years ago and now have DR in front of my name. I'm sure I told them about this.

25% appears to be the magic number...

[NoelWatson]

g3org3y said:

A silly question as well - do house prices fluctuate during the year with a particular 'dip' in prices?

In theory yes, and Halifax et al apply a seasonal adjustment to smooth this out.

http://www.nationwide.co.uk/hpi/method_qs.htm

What is seasonal adjustment?

We seasonally adjust our prices because the time of year has some influence. Winter months tend to see weaker price rises and spring/summer see higher increases all other things being equal


Of course, they need to reword this to

"Winter months tend to see greater falls and spring/summer see smaller falls all other things being equal"

but you get the idea.

[g3org3y]

Thanks for the info.

[Aydogflipper]

I put down 15k for my house which i bought in july.

House valued at 120k and bought for 105k. mortgaged 90k.

Halifax was the best option for me at the time, first time buyer and quite good rates.

[MATTP77]

Aydogflipper said:

I put down 15k for my house which i bought in july.

House valued at 120k and bought for 105k. mortgaged 90k.

Halifax was the best option for me at the time, first time buyer and quite good rates.

You just made me happy. This means POTENTIALLY, im in with a shout!

FYI, are you repayment or interest only?

[MATTP77]

I think i meant FMI?

[scotal]

MATTP77 said:

FYI, are you repayment or interest only?

You'll struggle to get an i/o mortgage beyond 75% LTV at the moment.
Certainly without evidence of a repayment vehicle being in place.

[groak]

scotal said:

MATTP77 said:

FYI, are you repayment or interest only?

You'll struggle to get an i/o mortgage beyond 75% LTV at the moment.
Certainly without evidence of a repayment vehicle being in place.

Do you do btl at all? If so I have a good client for you who wants to buy a going letting concern in Glasgow for £45k currently let at £4.2kpa that'll val at about £55k. He'll have 25% deposit and want a repayment loan probably of 20-25years. He owns a couple of letting concerns already which have plenty of equity in them, earns about £50kpa in his s-e managerial job with a company trading 6 years where he's a 25% sharehoder, with an income on top of about £6kpa from his 2 lets. PM/email me if you can deal.

[Aydogflipper]

MATTP77 said:

Aydogflipper said:

I put down 15k for my house which i bought in july.

House valued at 120k and bought for 105k. mortgaged 90k.

Halifax was the best option for me at the time, first time buyer and quite good rates.

You just made me happy. This means POTENTIALLY, im in with a shout!

FYI, are you repayment or interest only?

Repayment mate, was the only way i wanted to do it really.

Had no problems at all. Mortgage advisor took the hard work out of it.

[g3org3y]

Aydogflipper said:

MATTP77 said:

Aydogflipper said:

I put down 15k for my house which i bought in july.

House valued at 120k and bought for 105k. mortgaged 90k.

Halifax was the best option for me at the time, first time buyer and quite good rates.

You just made me happy. This means POTENTIALLY, im in with a shout!

FYI, are you repayment or interest only?

Repayment mate, was the only way i wanted to do it really.

Had no problems at all. Mortgage advisor took the hard work out of it.

Interesting.

Just wish house prices were like that down here in the SE

[BoRED S2upid]

Same as its always been 25%. If you don't have 25% you can't afford that house.

[Frankeh]

BoRED S2upid said:

Same as its always been 25%. If you don't have 25% you can't afford that house.

That's not strictly true though, is it.

I have 10K stowed away. I could get a £95K flat and still be quids in compared to how much I'm paying on rent with the added bonus of having an asset and paying it off.