Advice plz...Deposit for new mortgage

maninthestreet

Funky0803 wrote: »

It's not that i don't think it's unreasonable, i think it's almost impossible.
Both me and my wife are in well paid jobs for the area we live in. By well paid i mean we are still below national average but above average for where we live. We rent our home at the moment, the rent of which is on a par with the NATIONAL average (bare in mind this is being paid with a below NATIONAL average wage) So this instantly cuts into our saving power.

The avergage cost of a property in our area is £120k which means a £12k min deposit.
We have just paid for our wedding which was £10k (this took 3 years of putting our life on hold and was on a shoe string budget) Add in the cost of living ie extremly high council tax p/m, stupidly high gas bills etc... you start to get a picture that saving a "reasonable" deposit is almost impossible to do, short of not living a life for the next 5+ years.

It's easy for for those people who are loaded or people who got on the property ladder 5+ years ago to say that it's a reasonable request to fund 10%.
I say - Try starting again and see how easy and how reasonable you find it now.

You managed to save £10K in 3 years, so you've proved it is possible to save up a sum close to the deposit required in a reasonable time. You say you have a good salary for the area you live in, but below the national average, but also state council tax is 'extremely high' - there is some conflict there. Why are your gas bills 'stupidly high' ?? You would probably be better off posting your SOA for people to suggest how you can save money.
Just to make you feel a little better, I bought my first house for £54K in 1989. Eight years later, when I wanted to move, it was worth only £37500K - I had to pay off most that negative equity with my savings.

simpywimpy

HSBC were in the newspaper yesterday offered low deposit mortgages. Might be worth having a look there

iamana1ias

You were prepared to scrimp for 3 years to save £10k to blow on one day/party but object to doing the same to buy a property? Your logic is seriously flawed!

(PS - on what planet is £10k a shoestring wedding? People on here have spent less than £500 and are as married as you are).

silvercar

TrickyDicky wrote: »

If you cant rent and save a deposit then you cannot afford a mortgage for a similar property.

Rubbish! The rent on my property would be unaffordable, yet I can comfortably afford the mortgage.

[Deleted User]

iamana1ias wrote: »

You were prepared to scrimp for 3 years to save £10k to blow on one day/party but object to doing the same to buy a property? Your logic is seriously flawed!

Completely agree. It's hard to have sympathy for someone who says it's impossible to save £12k for a deposit but have just blown £10k on a party.

I think you have to accept that owning a house just isn't that important to you. You pretty much had the money at one point, but preferred to spend it on party poppers and sausage rolls. You can't have it all.

I sympathise with the view that deposits take a long time to save up - but it can be done. But not if you keep flushing your savings away.

Funky0803

maninthestreet wrote: »

You managed to save £10K in 3 years, so you've proved it is possible to save up a sum close to the deposit required in a reasonable time. You say you have a good salary for the area you live in, but below the national average, but also state council tax is 'extremely high' - there is some conflict there. Why are your gas bills 'stupidly high' ?? You would probably be better off posting your SOA for people to suggest how you can save money.
Just to make you feel a little better, I bought my first house for £54K in 1989. Eight years later, when I wanted to move, it was worth only £37500K - I had to pay off most that negative equity with my savings.

Like I said saving the money for the wedding was a killer, couldn't go out any where had to sell my car etc... it was sacrifice sacrifice sacrifice, not a complaint cos it was what we wanted. So basically to get married and buy a house these days (unless your cashed up or debted up) you have to put life on hold for pushing 10yrs? All me and the Mrs want is to start our family owning our own property. We work hard it isn't to much to ask. I think it would be easier if the banks relaxed the deposit request.
Council tax for my area is notoriously high but wages are not. This is a fact. I'm in the NW, there are no jobs here any more and the jobs that are here are paid peanuts, this is not a conflict it is a fact.
As for the gas bill, we use an average amount of gas, Simple as. Gas prices are constantly rising thats why we have high gas bills. As i said before our wages are good for the area but compared to the rest of country they are shocking so what may be a low gas bill to you is a high bill to us.

Just a note - There are countless house's for sale in my town some of which have been for sale 2+years now I ask this; why are all these house still for sale? not because they are horrible, some are quite nice with a reasonable price tag - the reason is people in my area cannot get a mortgage to buy the place, so the market it seems, is coming to a standstill. If banks relaxed the deposit slightly this would more than likley help. IMO

Funky0803

THIS SEEMS TO BE GOING AROUND IN CIRCLES... If you read my original post my deposit is sorted any way. I was making a general enquiry to start with and NOT looking for sympathy.

Thanks to those who advised me on my original query. As for those who posted later... at least i now know which site NOT to use in future for any financial advise.. well done!

sophievenusdoom

iamana1ias wrote: »

You were prepared to scrimp for 3 years to save £10k to blow on one day/party but object to doing the same to buy a property? Your logic is seriously flawed!

(PS - on what planet is £10k a shoestring wedding? People on here have spent less than £500 and are as married as you are).

Sorry, but this did make me chuckle :rotfl:my fiancee and I are getting married next year on what we considered a shoestring of £1500...£10k would be more like a fairytale to me!!

LilacPixie

sophievenusdoom wrote: »

Sorry, but this did make me chuckle :rotfl:my fiancee and I are getting married next year on what we considered a shoestring of £1500...£10k would be more like a fairytale to me!!

I spent 4.5k on mine and we considered that to be a bit extravagant.
Simple fact is to own you need a deposit how you get that deposit is up to you scrimping and saving getting a 2nd job, asking for a pay rise, selling stuff it doesn't matter.
If you hope to buy but cannot raise the required deposit then you can't afford to buy it really is as simple as that.

TrickyDicky

Funky0803 wrote: »

If was to buy my parents house from them it would cost me less a month to pay the mortgage than pay the rent on the smaller property we live in now and also the house we are buying is worth more than where we live now... so how does your theory work again???

The mortgage may be cheaper, but the repairs, redecoration, new white goods and buildings insurance will make up the difference. Then what happens when house prices fall and you're trying to move?

Owning a house is far more complicated than renting. PLus, like you said, you already blew £10k on a wedding, which could have bought your house.

If you cannot earn enough here, how about finding a new job elsewhere in the country?

Instead of expecting the banks to help you out - why dont you try helping yourselves?