First Time Buyer Mortgage

Aleph_2

Hi,

Does anyone know how we can manage to get a decent mortgage for a £160,000 house without the stupidly high deposit? Or are we just fighting a loosing battle?! :-(

Thanks.

beecher2

Better deals are for lower LTVs - nothing much you can do about that. How much fo a deposit do you have?

suisidevw

Have a similar mortgage and put down £30k. Save hard

Aleph_2

Only about 5%. Problem is we're renting which is dead money. I don't see why you need such a high deposit if you can afford the monthly repayments and can show you can pay things off. Totally wrong! We're trying to save but to save the amount they want would take us ages!

_Andy_

The higher the deposit the more security the lender has. The more security they have the less the risk they're taking (and vice versa).
Renting isn't 'dead money'.
Unfortunately you just need to keep saving for the time being, for the deposit, legal fees, stamp duty, valuation fee, etc etc.

andrewmp

Aleph wrote: »

Only about 5%. Problem is we're renting which is dead money. I don't see why you need such a high deposit if you can afford the monthly repayments and can show you can pay things off. Totally wrong! We're trying to save but to save the amount they want would take us ages!

Only dead money if the rent is more than the cost of interest only + maintenance.

beecher2

I've never understood this 'dead money' talk - you're paying for somewhere to live, without the responsibility for maintenance. There's a lot to be said for it.

Keep saving for the deposit, plus the fees associated with buying a £160k house.

VIGILANT22

beecher2 wrote: »

I've never understood this 'dead money' talk QUOTE]

same here.....plus the remark "stupidly high deposit"....Hmm I don't think it is the deposit that it is stupid!

emilyka

Aleph wrote: »

Hi,

Does anyone know how we can manage to get a decent mortgage for a £160,000 house without the stupidly high deposit? Or are we just fighting a loosing battle?! :-(

Thanks.

I'm in a similar circumstance to you except I've still got £2500 of debt to clear before serious saving starts! I know it is all a bit frustrating but I'm going to save as much as I possibly can (I would like £40K+), I'm aware this may take 5 years (possibly longer depending on what happens between now and then!) and in the mean time I'm going to hope seriously that the rates get better for lower end of the LTV ratio and that I get a few payrises

I live in an area where £160k will get you a studio flat or if you're lucky a small 1 bed which is unfortunate but as I dont want to move away I know it's a case of liking or lumping

Some authorities will do a shared ownership or shared equity type of scheme, this usually means buying a percentage of a property (therefore deposit is less) or alternatively some do a rent to buy (reduced rent rates to allow individuals to save up for a deposit). The website http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes is quite a good place to start looking at these, different authorities have different criterias (some are key workers only).

Asides from this I'm not sure of anything else other than saving and praying that the economic climate eases up!

Good luck!

Em

Aleph_2

Renting is dead money as you're just paying off some elses mortgage - What's good about that?! I'd much rather pay my own and pay for things that go wrong myself so I knw I'm not gettting over charged.

The deposit is one of the problems as it's the first starting point that is impossile to get over.

Thanks to the last person. We've look at the shared ownership but I've heard mixed reviews about that as they can put up the rent money whenever they want, so you have no choice but to pay it. Plus with purpoe built new houses like that, you have to have what everyone else has and pay just for someone to cut your grass!!

I'm hoping the government find that thing called common sense and get things sorted. Although the minute they do that - The house prices go up! Can't win!!

andrewmp

Aleph wrote: »

Renting is dead money as you're just paying off some elses mortgage - What's good about that?! I'd much rather pay my own and pay for things that go wrong myself so I knw I'm not gettting over charged.

The deposit is one of the problems as it's the first starting point that is impossile to get over.

Thanks to the last person. We've look at the shared ownership but I've heard mixed reviews about that as they can put up the rent money whenever they want, so you have no choice but to pay it. Plus with purpoe built new houses like that, you have to have what everyone else has and pay just for someone to cut your grass!!

I'm hoping the government find that thing called common sense and get things sorted. Although the minute they do that - The house prices go up! Can't win!!

If you were to buy a house which would cost you £600 per month on an interest only basis, but decided to rent it at a cost of £600 per month, how is that dead money?

Aleph wrote: »

I'm hoping the government find that thing called common sense and get things sorted. Although the minute they do that - The house prices go up! Can't win!!

What would you like the government to sort out?