Which Mortgage

PG_Tips_2

Heloo I am trying to buy a house, I am a first time buyer and can easily afford the repayments on a £150,000 house I want to purchase but I cannot afford the deposit, I only have 5% savings at moment, so can I:

Borrow 95%LTV, if so where?

Use my parents house, own outright and worth £400,000 as garantee?

Thanks

Caz3121

PG_Tips wrote: »

Heloo I am trying to buy a house, I am a first time buyer and can easily afford the repayments on a £150,000 house I want to purchase but I cannot afford the deposit, I only have 5% savings at moment, so can I:

Borrow 95%LTV, if so where?

Use my parents house, own outright and worth £400,000 as garantee?

Thanks

Income and current financial commitments will affect how much you can borrow rather than what you can afford to pay on a mortgage each month - the norm is around 3 x salary

95% may be possible if you have perfect credit but the rates will be higher

Unlikely you can use your parents house as guarantee

Thrugelmir

PG_Tips wrote: »

but I cannot afford the deposit,

If you can afford a £140k mortgage then saving while living at home should be easy. A few months of disciplined financial restraint should enable you to significantly increase your deposit.

ollski

Why not have a look at the lloyds bank 'lend a hand' branches where your parents could act as 10% guarantors.