Quick question about mortgage

LabLover

My OH and I bought our flat 6 months ago (one bed) and Im now pregnant we plan on staying in the flat untill the end of 2011. Not sure of what kind of deposit we will need to put on new place , we have a mortgage for £65000 and had our flat valued at £80000.Our place is a fancy new build , all energy efficient , has its own parking space etc and is massive for a one bed flat. We arent looking to buy anything fancy , if we moved into town we could get a 2 bed with a garden ( nowhere near as fancy what we are in ) for about £89000. My question would be , what deposit would I need to put down on second property. We would make about £15k on old flat but i assume about £5k would get swallowed in legal fees so that leaves us with £10k out of that we would need some money to make new place abit nicer so maybe would only be able to put £5k on new place. My question is would we get a mortgage with just over 5% deposit ?Obviously we arent first time buyers.Anyways any replies would be greatly appreciated

CloudCuckooLand

10% minimum. 15% for a better deal. 20%+ for even better deals.

Take your time to make the place nice. It doesn't need £5k on first moving in.

beecher2

No possibility of a 5% deposit - 10% as a bare minimum. Who valued your property at £80,000? You might find it is worth less than you think. Fees should be less than 5k though, and saving up to make improvements would be more sensible so you might still have 10%, depending on how realistic your valuation is.

nancyo

It really depends on who your mortgage is with, if you want to switch etc...I have been looking at lots of different deals for mortgages and there are a few 5% deposit ones for exisiting borrowers, I did see one at 100% but unsure how difficult it would be to get that one

LabLover

We are with HSBC , and put down a big deposit on this place , thats why we have as much equity in it. It was valued only weeks ago by two different estate agents.The company we bought our flat from still have a folder full of people who keep phoning to see if they are selling any 1 bed flats in the development( we bought the last one ) so I dont think we would have that much trouble selling it. I just dont see us saving that much money while im on maternity leave. I suppose we could always sell the flat and then move to rented property untill we had enought money for decent deposit. We struggled as first time buyers, never assumed we would struggle to move up the ladder,lol

beecher2

Estate agents often over value to get your custom so be wary with them. I would also be wary about believing that there's a folder full of people in a position to buy a new build 1 bed flat, but who knows, you could be lucky.

If your baby is due in July, I'm sure that you'd be able to cope until 2012 in a 1 bed, especially as you say it is massive. Maybe it is more realistic to delay until you're back from maternity leave.

LabLover

We have kind of put the word out that we may be selling and so far have 2 people interested , that remains to be seen if they will wait untill end of the year. I go back to work in January, thats why we thought we should wait untill then. We are lucky to be able to have equity I suppose , and I cant remember who said it but we dont need to have a money to decorate new place I suppose.Its just a shame the layout of my flat is all wrong , otherwise it would make a two bed , just all the wrong rooms are big. Will just need to try and save at the minute and see what happens.... Will be buying the triple roll over on wednesday , lol thanks for all your replies

smitchy73

I'd say if people are interested, get them to get valuation's themselves and make an offer, see how realistic the offers are, then if it seems right go to a solicitor and go through everything with the solicitor and if you can do it without the estate agents you could save a fortune, DONT do it without solicitors, or even still get your own independent valuation done other than the estate agents, see what that comes up with.
Congrats on the pregnancy and hope all is going well.

LabLover

There are a few one bed flats for sale in the town (mine is a little further out,closer to restaurants and offices) and they are on the market for £75k/£78k , some of them dont have gas or double glazing or have minging bathrooms. So hopefully mine would stick out. Anyhoo not going to worry about it at the minute , will wait till the end of the year and hopefully will have some extra money saved up. just wanted to see what kind of deposit I would be looking at. Evrything going well with pregnancy just glad its not twins , that really would be a tight squash