New Mortgage required....anyone got some money :)

deason_uk

Hi,

I'm saving at the rate of 500ish at the moment with currently about 10 months worth of save, got a bit of credit card debt but at the rate i am saving could go in a few months.

I really want to capitalise on the lower house prices and get a nice place before the prices shoot up. Issues are that the deposit at the rate im saving is just ridiculous and is likely to take about 3 years!

We are renting at the mo at a rate of 750 a month...partner earns above average and im a good salary....so what can I do without a meaty bit of cash deposit to line the bank pockets to throw down the drain again! It seems weird that i can throw money down the drain renting and have that much spare cash yet not be able to get a mortgage due to deposits.

Joe_Bloggs

Welcome to the forum deason_uk. I ask you to consider mentioning the savings account rates that you have. I may also be beneficial to mention your debt levels and the rates charged upon this debt.
It is crucial that your credit history is near perfect in these times of a credit crunch crisis.
J_B. (nil points for an alliteration)

opinions4u

deason_uk wrote: »

Hi

Welcome.

I'm saving at the rate of 500ish at the moment with currently about 10 months worth of save, got a bit of credit card debt but at the rate i am saving could go in a few months.

Getting debt free is a good starting point. Make sure all your bills are paid on time too.

I really want to capitalise on the lower house prices and get a nice place before the prices shoot up. Issues are that the deposit at the rate im saving is just ridiculous and is likely to take about 3 years!

I don't see anything in the market that suggests house prices are going to shoot up in the next three years.

Here's a linky that suggests it took nearly a decade for house prices to recover to their peak of the last housing boom. So there is no rush.

We are renting at the mo at a rate of 750 a month...partner earns above average and im a good salary....so what can I do without a meaty bit of cash deposit to line the bank pockets to throw down the drain again!

Nothing. You want a mortgage, you save a deposit. There is something infinitely more rewarding about owning a property you saved for than one that you put nothing towards.

By the way, you don't give the deposit to the bank. It buys you a part of the property, with the mortgage buying the rest.

It seems weird that i can throw money down the drain renting and have that much spare cash yet not be able to get a mortgage due to deposits.

Deposits are a good thing. Work hard, save harder and enjoy doing it!

Good luck.

brit1234

deason_uk wrote: »

I really want to capitalise on the lower house prices and get a nice place before the prices shoot up. Issues are that the deposit at the rate im saving is just ridiculous and is likely to take about 3 years!

Welcome,

Just a couple of points;

1. House prices are not low they are massively inflatted here and abroad compared to historical norms. The housing bubble was fueled by cheap credit and fraud. Fraud has been clamped down on, certain cheap credit is still availble through the dodgy shared ownership and shared equity. That is disapearing as government debt rises. The low interest rates won't be kept down this low for ever and will rise. When they do interest costs wil shot up massively on overpriced properties.
2. There has been some price rises but this is unsustaianble. It has been fueled by the schemes above, cash deposits and foriegn buyers on low transaction numbers distorting the market. This money is limited and once gone prices will resume downward trend.

Don't rush in research and save. You will not miss the boat. However it is extremely important that you pay off all debt first and then go for the deposit. Debt will go against your mortgage application