Options

ADPADP

Hey guys,

at a bit of a loss as to what the best option is for us.

We are both currently students and due to start jobs next year, both on about 21-22k . These are both 1 year contracts.

We have no deposit saved and 5k in overdrafts between us, uess it makes sense to pay this off straight away whilst it is interest free.

We would ideally like to get a mortgage together but without a deposit and the 1 year contracts this doesn't seem possible.

Are we destined to throw money away on rent for a few years in order to save a deposit?

Thanks for any advice.

GMS

You will not get a mortgage without a deposit. 10% minimum needed.

josievg

Yes you need to save a deposit and it would be best to also clear the 5K debt as well. Then you can think about getting a mortgage.

I don't really think you are throwing money away on rent - you are just paying for somewhere to live.

Sorry, I know it's not what you want to hear but you really don't have any other options at the moment.

ADPADP

Thanks guys, I thought this would be the case just good to get more opinions from those who know more than I on the matter.

ADPADP

Hi guys,

Looking for some more advice .

Made some progress since the last post. We have now payed off our £5000 in debt and have approx. £8000 saved. (could have £13,000 if we hadn't had overdrafts :shocked:)

Current income between the pair of us is ~£47.5k per annum. Both in "professional" careers - do professional mortgages still exist?

Is a 10% deposit still a necessity? Looking to purchase a property for around £140,000, how much extra cash are we likely to need over a deposit for fees etc?

Thanks for any replies!

thegirlintheattic

You can get 95% mortgages from some smaller BS just look on a comparison site. Nationwide does a save to buy account where after putting in a min of £50 per month for 6 months you get access to a 95% product. Rates will of course be higher than on a 90% mortgage.

Charlton_Taz

Depending on your profession you could consider Scottish Widows for their professional mortgages:

http://www.scottishwidows.co.uk/bank/mortgages/prof_intro.html

thegirlintheattic

Charlton_Taz wrote: »

Depending on your profession you could consider Scottish Widows for their professional mortgages:

http://www.scottishwidows.co.uk/bank/mortgages/prof_intro.html

A good suggestion but still requires a 10% deposit.

As for fees, I'm looking at a property of around £140K and worked out about £4.5K inclusive of stamp duty for all fees/expenses apart from removals.

ADPADP

I think we should be in a position to have more or less a 10% deposit within 6 months so maybe waiting it out is best?