A question on First Time Buyer Deposit required.

peace800

Hi

It looks like I'll have to put down 10% to buy a home. I'll be a first time buyer. I'm finding it difficult to get that extra 1 to 2 thousand pounds to hit that 10% mark (ltv 90%). Do some banks show some flexibilty or do I have to put down a n exact 10% deposit ?

thanks

_Andy_

No it will need to be 10%. You also need to be thinking about legal fees, valuation fees, stamp duty (if applicable), cost of moving in, decoration, furniture, emergency fund, money for ongoing repairs/development etc.

happybroker

Andy's right, the legals alone will be the best part of £1k depending on the purchase price (maybe less). If you haven't spoken to your broker yet it would be a good idea to do it sooner rather than later so that you have a clear handle on exactly how much you will need to put together or you might find the process a little more stressfull than normal.

TEDDYRUKSPIN

Keep on saving. 10% deposit or more. Don't forget stamp duty unless your purchasing a house under £175k. Legal fees can vary from £600 to £1000. Initial fees such as booking fee, arrangement fee, and the survey fee can vary from £0 to as much as £3k or more.
Also if you have household furniture to move etc, expect £100 to as much as £1k for movement.

woody252506

As Andy said its 10% with no flexibility.

Me and my partner have a 10% deposit but after paying that out we have made sure we have between £4k and £5k to cover everything else.

We are lucky in that over the last year we have bought as much as possible in preparation (TV, DVD player, cutlery, dining sets, towels, bedding, mugs, iron, ironing board etc) and kept them at both our houses (living with parents). Our parents are also buying us a 3 piece suite and bed/Mattress to help us out so we have pretty much the essentials we need to start living with the basics. We'll then buy the nice extras as and when we can afford them.

Then you'll need to cover a valuation fee (Anything from £200 to £800 depending on the type you opt for) and solicitors fees (£600 - £1000) so it all adds up.

Even when we have paid all this out we have saved enough so we can keep £1500 - £2000 in a savings account as backup money for anything that go's wrong or emergencys that could happen. :cool: