FTB with small deposit

Jo1979

Please can anyone advise me on my options.

Myself and my partner are first time buyers, currently living with my parents.

We are both civil servants and earn just over £17k per year (each).

I have a loan of approx £5k - £195 per mth (2 yrs left to go).

We have approx £9K in savings.

Do we have any hope of getting a mortgage for this amount? Due to savings above we would be looking at 95% mortgages (I think?) but is this just completely unrealistic in the current climate?

If we wait another 6 months saving approx £800 per month to make £15k in savings are we going to be more likely to find a mortgage for this amount (around £120K) or are we still aiming too high? House prices are quite high around here.

Many Thanks.

Kavanne

i put those details into moneysupermarket.com mortgage comparison and it said no matches :-o

TEDDYRUKSPIN

LOL. Kavanne. They computer said no!

Jo. 95% will be coming back but not very soon. I would suggest you pay off your loan and c/cards mainly due to this will give you more money to borrow. Meaning better house!

Rates are poor at the moment. Many companies are still deciding to stick at 90% LTV than go for the 95%. It's a waiting game unfortunately.

opinions4u

TEDDYRUKSPIN wrote: »

I would suggest you pay off your loan and c/cards mainly due to this will give you more money to borrow. Meaning better house!

Don't do this if it means you won't be able to get your 10% deposit together. No point being debt free but not having the house deposit you need.

Equally, no point having the deposit you need but not being able to borrow enough due to your other commitments.

Get your 10% deposit together first, then check out the mortgage market at that time to see if paying off your debts is the right thing to do.

In the ideal world you will be debt free and have a deposit of at least 10%, and preferably 15%. So easy to type in to a forum, bit tougher to work towards in real life though.

Good luck.