Deposit question

chugalongzoe

Hi all

I've seen morgages arround that offer 15% deposit does that mean if I have for example £15000 does that mean that I can only buy a house for £100000 and no more?

Your help would be much appreciated.

Thanks

poppysarah

Thats about it.

beingjdc

Less, if you literally only have £15,000, because you'll need some of it over to pay your solicitor, hire a van, buy new furniture, etc.

Robert_Sterling_3

If you buy a house for £100,000 the valuation the lender puts on it might only be £95,000 and they might only lend you 85% of £95,000 i.e. £80,750.

But in general yes you are correct.

poppysarah

beingjdc wrote: »

Less, if you literally only have £15,000, because you'll need some of it over to pay your solicitor, hire a van, buy new furniture, etc.

Which can quickly add up to a couple of grand if you're not careful.

penguine

Before viewing or even thinking about making an offer, you should be talking to an IFA or mortgage advisor. A good IFA will help you go through all the associated costs before you start viewing properties. You're also going to be taken more seriously as a potential buyer if you have done this first.

chugalongzoe

Thank you all for your responses your help has been noted and much appreciated.