Mortgage HELP!

darrenwis

Hi,

I'm 23 and saving for a mortgage and hope to have a deposit sorted in the next few years. If I was to go for a house worth approx £100,000. As a rough ball park figure how much deposit do you reckon I would have to put down? 10k?

Thanks,
Darren

kerry13238

the more you can save the lower rate you will be able to get. dont forget you will need to budget for fees to that will be at least £1000 i would think not sure on that and mortgage lender fees prob another £1000.

maninthestreet

10% is the bare minimum. 15% may get you access to better mortgage deals.

darrenwis

ok thanks,

This may seem a stupid question but do people also look at unsecured loans to raise the funds for the deposit?

kerry13238

some do but you need to make sure you can afford both + new utilitys try martins budget planner. good luck

TimSage

Hi,

I can only really echo the comments already made on here. You will need at least 10% deposit as well as funds to cover the fees associated with the process.

At the moment, you can expect to pay £800-£1000 in solicitors fees, a valuation fee of £200-£400 and booking/arrangement fees for the mortgage (these can normally be added to the loan though).

At the kind of price level you have mentioned you wouldn't have to pay stamp duty, which is some good news at least!

There are plenty of lenders who are offering mortgages right up to 90% of the value of the property. However, most of the best deals as things stand, are only available direct from lenders. Some of brokers will include these deals in our research, but not many don't seem to be doing this at the moment.

The situation may have changed by the time you are ready to buy but make sure you use a broker who will search for all of these "direct to lender" deals because it can save a riduclous amount both in setting up costs and the ongoing interest rates.

All the best with your saving!

maninthestreet

darrenwis wrote: »

ok thanks,

This may seem a stupid question but do people also look at unsecured loans to raise the funds for the deposit?

It's extremely unlikely that a lender will accept a loan as a source for a deposit.