Deposit saving? How much is enough these days?

louby_lou

I am just starting out on my deposit saving journey. I am planning to save a 10% deposit on a circa £150,000 house - so 10%. This would just be a starter house, not a forever house so maybe for the next 5-8 years or so. My concern is that I hear that deposits below 25% do not get the best deals. While I understand that owing to the current climate lending is a different game and banks are looking to lend with less risk, does this mean that buying with a deposit of 10% is unwise? Would I be better off saving for the 25%? I feel disheartened if so!

How would forum members advise?

tiny_tear

Don't forget it's not just the deposit you are saving for.
it's the deposit, solicitor's fees and moving fees and a small buffer for the things that go wrong when you move such as new boiler and stuff...

dgtazzman

Seen some lenders now not taking less than 15%, I'd keep saving imho, you'll be in a better position in the end...

firstaspect

10% deposit would be the absolute minimum you should save, as well as an extra preferably maybe £2k to cover all your moving costs, mortgage valuation fees, solicitor etc. You definately won't get the best deals though. If you can save enough for a 15% deposit then you'll get better deals. I'd recommend that at least.
Obviously if you can get 20% or 25% you'll get even better deals but we just moved with a 15% deposit and that was a reasonable rate.

AndersLimpar_2

90% LTV will get you a rate of 5.09% with HSBC at the moment. Think thats the lowest around at the moment ofr a 2 year fixed deal. 5.69% with YBS but this includes free valuation, free buildings and contents for a year, free legal service (not including searches) and £500 cashback.

15% LTV will get you a rate of around 4.2%

Direct for best deal on 90% LTV, brokers for 85% LTV and above.

sonastin

Start saving now with the goal of 10% in mind. When you've reached 10%, keep saving but start looking for something to buy. You are unlikely to find the right house straight away and while you are house hunting your deposit is growing. If the house you end up finding costs a bit less, or if it takes you a while to find the right place, 10% can easily turn into 15% while you're not watching!

louby_lou

sonastin wrote: »

Start saving now with the goal of 10% in mind. When you've reached 10%, keep saving but start looking for something to buy. You are unlikely to find the right house straight away and while you are house hunting your deposit is growing. If the house you end up finding costs a bit less, or if it takes you a while to find the right place, 10% can easily turn into 15% while you're not watching!

Thanks sonastin - that makes me feel better! Hope by the time I'm 30 I've started to tentatively climb the ladder. 4 years left!

nakiwala123

sonastin wrote: »

Start saving now with the goal of 10% in mind. When you've reached 10%, keep saving but start looking for something to buy. You are unlikely to find the right house straight away and while you are house hunting your deposit is growing. If the house you end up finding costs a bit less, or if it takes you a while to find the right place, 10% can easily turn into 15% while you're not watching!

I second this. This is what im doing right now.