FTB - realistically how much deposit would we need?

ClaireLR

Was just after some quick advice please

If I wanted to buy a house, 50% shared ownership, for £54000, how much deposit would I realistically need to have?

Also, what would the repayments roughly be on this?

Also (sorry!) I was made bankrupt about 18 months ago, how much impact will this have on me being able to get a mortgage?

Any advice would be appreciated, thanks :beer:

ClaireLR

Anyone??

herbiesjp

The minimum you would need is 5%-10% of your share of the purchase i.e. £54,000

There are lots of different rates that you could look at but it depends on what deposit you have to put down, and that would affect the monthly payments.

Being made bankrupt 18 months ago will pretty much rule out most mortgage options you may have had.

Have you been discharged?

ClaireLR

Yes I was discharged in July last year, it was an automatic discharge 12 months after. I take it that interest on any mortgage I might get would be a lot higher for that reason?

I've also been looking at the homebuy website this morning, do you know much about this? Sorry I've just noticed your sig and so want to pick your brains now please!

ClaireLR

Oh forgot to mention my annual salary is £20k.

herbiesjp

What deposit do you have?

ClaireLR

At the moment nothing! I would be able to borrow 5-10% from my dad, we do have enough saved for solicitors fees etc.

herbiesjp

You may have some very limited options - HOWEVER the rates will be high and you will be tied in for a long time.

What is in your favour is the fact that the mortgage amount is relatively low. So if you did decide to pursue this route the impact to in terms of monthly mortgage payments and penalty fees to leave would not be as great as someone with say a £100k+ mortgage

You would really need to look into this in very close detail, and preferrably via a whole of market mortgage adviser who would be able to explain the scenario to you

oneandonlyboy

Hi,
You will need a minimum of 40% and even then you might not find anyone. 50% would be a good starting point and you will have a high interest rate. Bare in mind that at the moment the interest rate is at an all time low and when it increases the impact on your interest rates.

ClaireLR

40% as a deposit :eek: :eek: :eek: Is this because of my bankruptcy I take it?

Do you think it would be worth speaking to a mortgage advisor, I definitely would not be able to borrow 40% from my dad, nor would I want to!

herbiesjp

That information is incorrect

On a shared ownership deal you will not need that kind of deposit - a larger deposit will always help, but you have a limited chance based on what you have posted above

You are definitely going to need the help of a whole of market mortgage adviser