Deposit confusion!!

sarah_louise_b

hi wondering if anyone knows if mortgages with less than 10% deposit are available?
we have a house up for sale and hubby works for HBOS but although the deal on staff rate is ok they want a 10% deposit which is going to be difficult to get together as we wont even get half that in equity from our current house we have some savings too, combined we earn about 45k and looking to buy for about 200000.

would love some good advice on this one! coz i have no idea if we can afford to move!!

beecher

10% deposit is the very minimum. Even with that you're at risk of being in negative equity pretty soon. Looks like you need to look for somewhere cheaper or postpone til you've got £20,000.

sarah_louise_b

:eek:oh thats not good, i was hoping there would be something out there!!

beecher

If you have less than 10% equity in your house, an option is to sell and then rent and build up your savings til you have at least £20,000. Though you might need less if that £200,000 house comes further down in price.

sarah_louise_b

Thats quite a good idea thanks. It would help us save more than currently doing!

Robert_Sterling_3

All other things being equal i would expect that the more a house is worth the more its price will fall.
Therefore wait and save whilst at the same time watch the marketplace.