How Much Deposit

dardar

Hi all,

I'm currently looking at getting a mortgage, as a first time buyer.

I don't have a huge deposit behind me, but should be able to scrape the 10%. However, I notice most banks now require 20-40% deposits, which seems ridiculous!

My question is if you've found anywhere still offering 100% or 95% mortgages, or even just 90%. I can't find masses of information online...

Thanks!

smcqis

www.moneysupermarket.com/mortgages there is a section in there for 1st time buyers and mortgages for 10% deposit

dardar

Thanks - have had a look - looks like Nationwide are a good bet, and Halifax...

VIGILANT22

beware nationwide have tightened up on income multiples..

Thrugelmir

I don't have a huge deposit behind me, but should be able to scrape the 10%. However, I notice most banks now require 20-40% deposits, which seems ridiculous!

Why? Saving for a deposit indicates to a lender that you are a reasonable risk to lend to. We all have a choice as to what we spend our money on.

dardar

Thrugelmir wrote: »

Why? Saving for a deposit indicates to a lender that you are a reasonable risk to lend to. We all have a choice as to what we spend our money on.

Indeed, but as a first time buyer who's not got a huge pot of inheritance and, whilst I have saved what I can, I haven't got £50k for a deposit (I've only been in full time work for a few years), I don't think, unless I literally sat around, did nothing and got depressed, I'd be able save that sort of money.

I think 10% deposit should still be standard as it has for years, yet it seems, despite house prices jumping up way more than salaries, banks are going in the other direction.

If I'm completely honest I think rental is better, and we should all rent like in Europe. Gives people more flexibility, but the UK government managed 20 or so years ago to trick us into thinking mortgages were best in order to secure more tax...

Raggs_2

dardar wrote: »

I think 10% deposit should still be standard as it has for years, yet it seems, despite house prices jumping up way more than salaries, banks are going in the other direction.

If I'm completely honest I think rental is better, and we should all rent like in Europe. Gives people more flexibility, but the UK government managed 20 or so years ago to trick us into thinking mortgages were best in order to secure more tax...

Did you miss the bit where all the banks almost went tits up due to risky lending?

And if you think rental is better, then what's the issue?

I'm going to eventually be a first time buyer (I hope), however I intend to save as well as possible beforehand to be a first time buyer with a good ltv, a low interest mortgage, and better earning potential so that the first house I buy, is the only one (perhaps another for retirement).

Wutang_2

Raggs wrote: »

Did you miss the bit where all the banks almost went tits up due to risky lending?

Did you miss the bit where as house prices decreased, the levels of condescending went up massively?

Thrugelmir

dardar wrote: »

I think 10% deposit should still be standard as it has for years, yet it seems, despite house prices jumping up way more than salaries, banks are going in the other direction.

90% mortgages have been available for years. however they do come at a cost ie higher interest rate. They are not the norm however. Average deposits put down by FTB's are far higher.

House prices have risen faster than salaries due to lax and risky lending for a number of years. As the effects of the lenders tighter credit lending criteria takes effect then house prices will ultimately adjust.

You don't want to make a determined effort to save a large as possible deposit. The banks lend other peoples money to you. So is everyone borrowed 90% where would the money come from?

This in itself is why the credit market is tightening. Money is finite.

Raggs_2

Good point Wutang! House prices have been going down, not up like the OP stated, well spotted!

(Looks like sarcasm and wit are on the rise too )

surreybased

Hi,

It is also the credit availability over the last few years that has enabled house prices to rise. Once the banks start to go back to sensible lending then house prices will not increase as people literally won't have the credit available.