Mortgage Deposits

lolly3fh

How much deposit are you expected to put down on a mortgage?

I save whatever I can afford every month, but this isn't much. Basically it's going to take me about 20 years to save £20k, I don't want to wait until I'm 45 to get a mortgage!

Does anyone do 100% mortgages these days? Or is the only way to get a loan on top?

Confused...

_Andy_

No 100% mortgages available.
A loan can not be used for a deposit.

herbiesjp

It's a case of either save, or get help from parents.

How much do you have saved up?

What purchase prices are you looking at?

Do you have any other debts - what is your income?

Do you have a good credit history?

All questions that need answering.

lolly3fh

I have little saved up, as I can only save drips and drabs, such as £100 per month (ish). And even then my savings still get spent on things like car service etc, it ends up being more of an emergency fund.

I'm not looking at anything in particular at the moment, as I'm certainly not in a position to buy yet. I'm on £18250pa, so have no chance of getting a mortgage on my own. I'm just trying to get an idea of what I need to do when I am in a position to buy, maybe with a partner or something.

I have no loans, and my credit history is ok, not good not bad, but I'm on the slow road to imporoving it.

mintedmatty

Looking at it from both perspectives if you only have £100 to spare currently, you wouldnt be able to afford a mortgage anyway? Now, you dont say if you pay rent? do you live with parents? You say you have no debt, I guess your take home pay is around £1100 ish? what does this go on to be left with £100?

Its a harsh reality that FTB's now need a good 20-40k deposit at least when buying a property, I have a work colleague who has been told by a mortgage advisor not to look until he has £50,000 deposit, my colleague replied ' that will mean saving £700 ish for over 8 years' and the mortgage advisor replied ' yes, sorry but thats what you need to do these days, if you cant afford to do that then you cant really afford a house' !!!!! now I would say the way the adviser put it was a bit extreme, but he is 100% correct. The current climate dictates you need to save £6-800 per month over a period of a couple of years to be able to buy a house, if you cant do that then plain and simple you cant afford to buy one? If you read my previous posts I've had jobs since i was 13 with a percentage of every salary going into a account towards a house, after my degree I saved £6-700 a month for 18 months while i lived at home, I caught public transport, didnt go travelling round the world with my friends, didnt go out as much, it was pretty tough but in the end i had a £40,000 deposit to put towards a house.

Nobody has a right to own a house, it has to be earned, some people earn the right, some people dont? My advice would be if you live at home then persuade you parents to stop charging you rent (if you can) and say you will save the same amount into an account every month, offer to show them your statements.If you rent somewhere? could you move back in with your parents? (its awful i know, but think longterm!) Look at overtime, also look at getting a second job, its not nice working an extra day a week, or a couple of extra nights a week but it works, if you're earning you arent out spending? cut all outgoings down to bare minimum, and suddenly you should start see a big jump in your savings.

With no debt, the ball really is in your court!

firstaspect

Unfortunately if you can't save 10% deposit then you're unlikely to be able to get a mortgage. However if you say you can only currently save around £100 a month and often need to use that savings up then how would you afford the mortgage repayments anyway?

Littlebutterfly_2

lolly3fh wrote: »

How much deposit are you expected to put down on a mortgage?

I save whatever I can afford every month, but this isn't much. Basically it's going to take me about 20 years to save £20k, I don't want to wait until I'm 45 to get a mortgage!

Oh dear....it's taken me till I'm 47...