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FTB - low deposit amount
radio_2
Posts: 6 Forumite
We've been trying to scrap together a deposit for a house and I was keeping an eye on Halifax's FTB mortgages partly as they would accept a 3% deposit and partly because I know they do mortgages for houses of "non-standard construction" which are cheaper in the area I live.
I see that in the last few days this has increased to needing at least a 5% deposit which puts things further out of our reach as I feel that if we are going to do this it needs to happen sooner rather than later and I fear we've missed the boat.
I know the market isn't great at the moment but with the fall in house prices it's actually more in our favour as we could afford to get a small two bedroom place that we need (we have a baby) on our income. (currently just under £20,000)
Is there any chance that we could find a deal with such a small deposit or are we basically going to have to sit this one out?
I see that in the last few days this has increased to needing at least a 5% deposit which puts things further out of our reach as I feel that if we are going to do this it needs to happen sooner rather than later and I fear we've missed the boat.
I know the market isn't great at the moment but with the fall in house prices it's actually more in our favour as we could afford to get a small two bedroom place that we need (we have a baby) on our income. (currently just under £20,000)
Is there any chance that we could find a deal with such a small deposit or are we basically going to have to sit this one out?
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Comments
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sorry to say you are going to have to keep your eye on the mortgage market and wait and see if higher loan to value deals will come back, of which there are no guarantees.
many lenders will lend on standard construction but not always at high loan to value and there are so many different types of construction it would be worth finding a decent whole of market broker who should be able to tell you what you are looking at as you may need a bigger deposit.Happily an ex mortgage broker!0 -
Don't worry, you haven't missed the negative equity boat just yet.
Why do you want to buy when prices are dropping every month?0 -
lol, thanks for the sarcasm LMA.
We want to buy as when the prices were higher they were too high for us to get on the ladder. I've also done the fatal thing and taken a shine to a house in particular but I'll have to listen to my head and concentrate on getting a larger deposit and see where things stand then.0 -
You cant afford to buy as you cant save for a deposit and don't earn enough thankfully the banks are now stopping anyone who can breathe on a mirror getting one...at last we have sense.It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Deposits are there for a reason. If you can't afford to save up for a deposit, then you probably can't afford to buy a house.poppy100
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