Deposit Cheaper Interest Rate?

PeterJames123

Hi, My wife and I have managed to save around 30k over the past 5 years and would like to by our first house. My parents are also giving us 5k to pay all solicitors and bank fees. Will we be offered a cheaper interest rate due to us having this size of a deposit?

We earn £2150 a month and have worked out that to live it will cost us
£1068 on all expenses and can not spend more then £700 for the mortgage. Leaving us with £382 a month (as we need some sort of cash at the end of the month)

What we would like to do is buy a house at around the £150k (as the ones below that are not that nice in our area), put 30k down as a deposit but pay no more then £700 a month on the mortgage. Do you think this will be possible? I have looked around but can't get a real good answer. .

Thank you very much.

davies0121

First of all, well done for that very impressive deposit.
Secondly, there are plenty of calculators around that are very helpful. The main one I use is http://www.jeacle.ie/mortgage/ and after putting in your details of £120,000 mortgage (after 30k down) and an interest rate of 6% (probably less but better to over estimate), the calculate comes out £684.23.
The above example is for a 35 year mortgage. The figureswill vary but at least you have a new calculator to play with figures and work out what's best for you.
Note - I know the calculator is shown in $ but the equations are exactly the same as £.

bacardi.

try moneysupermarket put in your earnings and out goings it will give you an idea who will lend to you, and at what rates

_Andy_

PeterJames123 wrote: »

Hi, My wife and I have managed to save around 30k over the past 5 years

Nice work

We earn £2150 a month

What's your gross annual incomes?

aand can not spend more then £700 for the mortgage. Leaving us with £382 a month (as we need some sort of cash at the end of the month)

Have you factored in insurances, house maintenance costs, etc.?

but pay no more then £700 a month on the mortgage. Do you think this will be possible?

Quite possibly yes, as rates are quite low at the moment.

PeterJames123

Hi Guys,

Thanks for all your help.

The Monthly budget we had down was as follows;

Gas £66
Electric £100
Water £50
2 Cars - Road Tax £20
2 Cars - Car Insurance £200
2 Cars - Car M.O.T £6
2 Cars - Car Petrol £65
2 Cars - Car Service £20
Council Tax £150
Food £250
TV, Phone, Internet £45
Mobile £25
House Insurance £40
Life Insurance £20
TV License £11
Total £1068

£1068 + £700 Mortgage comes up to £1768.

What we did not budget for was furnishing and decorating the house which we think will cost around £10k and on top of that I will need to buy a car to get to work which will cost around £5k.

So we are still 15k Short
Not only that but we do plan to start a family and there is no way I can afford to pay the mortgage and bills with just my wage of £1300 and my wife's maternity pay. We are simply stuck living at my parents house living in one room until we get a bigger deposit.

Sharra

Hi - can I suggest you pop over to Old Style moneysaving if you want to cut back on your budget and get your own place all the quicker?

For example - A house can be decorated and furnished way way way under 10k, they will also suggest ways of cutting down your fuel bill and food costs.
It's also worth really shopping around for your car insurance (I obviously don't know your circumstances but £1200 a year seems a lot for car insurance to me.)
Do you need to spend £5k on a car? A cheaper car would again cut your insurance costs.
Just a few thoughts