5% Mortgage First Time Buyer

Robert_Sterling_3

Christie22 wrote: »

However if we wait to save a 10% deposit we will have to wait till next year and will more then likely have to pay stamp duty which would be £1500. Where if we act now we will not have to pay it!
Christie

Stamp Duty at 1% on £175,000 would be £1,750 rather than £1,500

Rick62

Not if the property price was £150,000.

CLS26

Incidentally, I thought 95% LTV deals were now a thing of the past?

Yours confusedly,
CLS

Robert_Sterling_3

Rick62 wrote: »

Not if the property price was £150,000.

I was saying that if the property price WAS £175,000 then the Stamp Duty would be £1,750.

You have kindly told us that if it were a different price the stamp duty would be different.

poppy10_2

Christie22 wrote: »

However if we wait to save a 10% deposit we will have to wait till next year and will more then likely have to pay stamp duty which would be £1500. Where if we act now we will not have to pay it!

The average house lost £30,000 in value last year, and is predicted to do the same or worse over the next twelve months. Prices have been falling by over £2000 a month. £1500 stamp duty is small change.

natman

Hi Good luck with it all, i just thought I would highlight another consideration with your savings and buying a house -

Also a friend of mine bought a house 2 years ago at £160k and took mortgage for £155k - their two year fixed is now at an end they looked at trying to get another mortgage product, but the valuation of their house is £145k, and no one will lend to them, They have had to go onto their banks standard variable rate( which luckily at present is not too bad, because of the base rates, but this will start increasing sometime soon..........

We are currently part exchanging our house and cant beleive the add on's that are charged when buying a house -

Solicitors -
Buying fees - £400
Local searches - £100
Land registry - £8
Bankruptcy Search - £6
Land registry fee - £220
Stamp Duty - nil for you guys as your house under £175k
Drainage search - £100
Other searches may be up to £100


Like Mortgage Fees - up to £1000 in some cases
Home Buyers survery - £300
Mortgage admin charge - £300
You may also have to pay indemnity insurance( to protect the mortgage comany if you are borowing close to say 90%) £500
Removals -???

Bills
BT - To put your line back on £100
elect - £30 a month say
BT Bill say £20 a month
gas £30 a month say
tv licence - £20 a month
Council Tax - £100 a month
Mobile phone???? = £20 a month
House insurance -£300 a year
Internet??? - £15 a month

So yeah its wel worth trying to budget, and really get saving.................

A tip from me - only an opinion mind
We bought our first house some time ago and just for ease of working out lets say our house was £100,000.
I was putting a deposit down of £30,000 ( this basically was all my savings)
We needed a mortgage for £70,000.

The mortgage company carried out a survey and stated that the house was only worth £99,000, because of some mortar that needed replacing in a section of brickwork.
I was ok with this - well so I thought, but the Mortgage company said the £70,000 Mortgage i wanted would be dropped to £69,000 becasue of the valuation.

I asked the seller to drop £1000 - they wouldnt
I asked the Building society to give me the £70,000 mortgage as the house was still( in their eyes) worth £99,000, but they refused.
I had no spare money to add as i had used it all with the initial deposit - i lost the house.

I think all i am saying is - give yourself some financial flexibility - if you have 10% - 15% deposit, maybe use 11% as a deposit, and once you move in, see about making a few overpayments if you wanted............
Hope that makes sense.
I also agree with some other posts - if house prices are falling, just bide your time and save, what is worth 180k today may be 160k by the end of the year, if you manage to save 10k, thats sort of 30k saving - therefore making your stamp duty trivial.
Like i said i am in the process of selling / moving

I have £110,000 deposit from the equity in my current house to put down on a £206,500 new house.
I would like to add £10,000 to the deposit from savings - but i am keeping hold until all the paperwork and valuation is done, then when all is well, i wil either ask for a £10,000 less mortgage or make overpayments to the mortgage.

Good luck.