First time buyer

taylor1137

I am a first time buyer but can not afford a bigger deposit than 10%, at this deposit i have found the rate is not very good, can anyone give me advise in house to get a good rate with a little deposit or recommend a good morgage company to go with.

opinions4u

taylor1137 wrote: »

I am a first time buyer but can not afford a bigger deposit than 10%

If you can't afford to save longer for a bigger deposit, how will you afford to make the mortgage payments? If you're renting, I understand why. If you're living at home with parents, then you should be able to raise a bigger deposit from hard saving.

at this deposit i have found the rate is not very good, can anyone give me advise in house to get a good rate with a little deposit or recommend a good morgage company to go with.

The answer is to get your deposit up to 15% if you can.

You might find house prices are a little lower in a few months time, so you can gain from a lower purchase price and a bigger stake in the house you buy.

_Andy_

taylor1137 wrote: »

I am a first time buyer but can not afford a bigger deposit than 10%, at this deposit i have found the rate is not very good, can anyone give me advise in house to get a good rate with a little deposit or recommend a good morgage company to go with.

Rates with that small a deposit are 'not good' because the lender is taking a significant risk (as will you be) in a falling market.
If you can't afford to save any more, how are you going to afford legal fees, stamp duty, valuation fee, moving costs, contingency money etc?

sal_strawberry

Believe me i have searched high and low as a FTB with 10% deposit - the rates are about 6% at the lowest and that is with the Post office direct. For example we are borrowing £144k and have £16k deposit, our monthly payments are £880 on the C&G mortgage fixed 5 years at 6.59%.

We have extra money aside for solicitors (totalling £750) and survey (£500 - £700) plus redecorating, and other unforseen costs - Totally we have £5k extra for all this.

Saver-Rob

Yes, that is a high rate. We were quoted 4.99% fixed for 5 years on a £100,000 mortgage with Brtiannia BS. This was the first and only place we have been so far so expect we can do better.

In the long run you could save alot of money if you could manage to save a bit more before you get a mortgage. The rate could mean the difference between getting repossessed or paying it off each month.