FTB - How much deposit?

jen_1985_04

Hi All

I would really appreciate some advice

I'm 24 and hoping to buy a place of my own in the next few months.

I have found a town house I really like, it is listed at £115k.

My current salary is £20k, realistically how much of a deposit would I need to have saved up to be able to afford this property?

thanks

hostie1985

hi jen,

you would need at least a 10% deposit and fees etc. you would need at least £11,500 (even if you do get it abit cheaper, the rest can go towards fees). to get the best rates you would need to get around a 25% deposit.

there is a thread on MSE called 'we're saving for a deposit' and there are loads of people on there will encourage you as well.

Hostie

xx

jen_1985_04

Thanks Hostie, I am on that thread too

I'm not sure if anyone would offer me a mortgage as a single applicant with a lowish income

LilacPixie

I think you would need alot more than £11500. as with a 20k income you will find it impossible to get a mortgage of the remaining 103500.

Realistically I would say a mortgage of 3 times your salary to be practical and affordable so you would need 55k saved.

hostie1985

i think, generally speaking, 3/3.5 x income is what you would expect, but the more you put down the less you would need to borrow and less you would need to pay back.

i'm looking to get at least a 15% deposit on a place, its a slightly better interest rate

hostie

xx

LilacPixie

Halifax has a how much can we lend you calculator that appease t be programmed to say 4.33 times annual income as a maximum lend amount http://www.halifax.co.uk/mortgages/forms/minicalc/container.asp

jen_1985_04

My parents have offered me 10k to go towards my 16k deposit... i'm still a long way off

Feels like I'll be living with my parents forever...

delmar39

Based on a 'What can I borrow' calculation via the Nationwide website, you can borrow up to £82,000. So, not including fees, you need to find £33k if you get it for the full asking price, which is around a 30% deposit. So, unless you have a big deposit I'm afraid you won't be able to borrow the money. Look for something within your budget just to get on the housing ladder and if prices rise use your equity to go onto bigger and better things......