Smallest amount we can put down on a house?

mae

Hi I would like to know what the smallest amount would be that we could put down on buying a property? The reason for this is very briefly that my son (only 15 at mo) has quite a lot of health problems and I feel this may affect his job prospects also because of future operations also affect his time at work and possible health insurances too so I was thinking that I would like to help him get on the property ladder. I know he is only young yet and I would not tell him of my intention as I never actually want him to move out ;-) however thinking of the future I thought if I saved now for a deposit for a terraced property and let it out which would hopefully cover the mortgage it would be an investment for his insecure future. So around where I live I could get a terraced for approx 120k what deposit and fees would I need realistically?
We have a mortgage already of 100k on a 260k home.
I would be grateful of any advice. Thanks

amyandoli

you can get a 100% mortgage, where you dont need any deposit, just your legal fees, but you normally end up paying more interest back. i think you can get 3% mortgages being the smallest... so thats about £4k deposit? the more you put down, the better... someone brighter than me will post in a minite with better advice lol! good luck x

mae

Please note that when I do buy I would use a letting agent for the first 12 mths as suggested while i did my research to try and take on the running of it myself but I like to know the ins and outs of a ducks backside before I go ahead with anything so I will have to know my stuff and do my reserach very well. Just want to know the initial costs first so I can start the saving before anything else.
thanks

mae

Thanks for that Amyandoli. I would like to put as little as possible without it affecting the interest rate, I'd rather save more and get a good rate if possible.

lynzpower

i thought you needed 10% on a BTL mortgage as a rule?

ds1980

as a rule you need 15 % minimum for btl. There are 95% btl's available though you just need to know where to look. You can however do 100% mortgage and then suddenly not live in the place anymore. You would need £1000 for solicitors and maybe £500 for fees but most can be added to the loan.

Forget an agent use someone like halfapercent if you must but do all the work your self it is a lot easier than you think. I am assuming youll live fairly close by.

hope it goes well.

mae

Thanks ds1980. Yes I want to buy local to where I live. I will maybe go and see an advisor and see if he thinks we could get a 95% on a buy to let then take it from there I just wanted a rough estimate to see what we are aiming at saving and how long it will take us. Thanks

tomstickland

Given the uncertainties of the property market why not just start saving for a deposit for the future?

ds1980

tomstickland wrote:

Given the uncertainties of the property market why not just start saving for a deposit for the future?

what uncertainties!!!!!!!!!!!! Go for it youll only regret it. For gods sake people live a little!

There is a simple equation that people should remember.

My life span (now 26) = population increase (excluding armegeddon) & housing shortage (excluding the director of fairview homes becoming prime minister) = price increase. That is the only sum you ever need. Do your maths and research in everything you do and you can not go wrong.

Please dont reply to me with economics and cpi's, dti's % this and % that. People over equate things on here get over it.

Final statement: Too many numpties in this world for me not to succeed

I thank you

roswell

firstly DS1980 ... excellent post, in future i wont look into APr`s / amounts repaiable / penalties and just live for the moment ... and a life time of hell.

To Op, would your son not be able to get state assistance due to his illness`s / health, I would agree with Tomstickland after all there is no rush for him to move out you may as well save a deposit for him .. what if you got him a house and he didnt want to live there ? what if he wanted to go to uni and met the love of his life and moved to scotland / spain / australia / mars?

ds1980

roswell wrote:

firstly DS1980 ... excellent post, in future i wont look into APr`s / amounts repaiable / penalties and just live for the moment ... and a life time of hell.

To Op, would your son not be able to get state assistance due to his illness`s / health, I would agree with Tomstickland after all there is no rush for him to move out you may as well save a deposit for him .. what if you got him a house and he didnt want to live there ? what if he wanted to go to uni and met the love of his life and moved to scotland / spain / australia / mars?

no if you read properly do your maths and research. i know about them i dont need someone else to bore me with it!!! good luck op