Mortgage required

nickem

Our rental agreement is coming to an end in July of this year. We can only save around 10K by the time we move out, which is due to previous bills, which are now paid off. We have a combined income of £71,000 with zero debt. We really don't want to move into another rental property if it's at all possible. Looking at current lending criteria 10K deposit is not enough, we are looking at purchasing a new home for around £180K. I know everyone is going to say "just move into another rental and save hard for another year", but we want to move into our own home and feel settled without getting another year older. I have Just spoken to RBS who will only lend us £162K with 10K deposit on a 4.89% tracker, this is getting close but there's nothing in our area for less than £175K - any advice would be appreciated? Before anyone mentions it, there is no option for our family to lend us any money.

DannyboyMidlands

I can understand why you don't want to move into another rented place. It get depressing after a while doesn't it? Constantly moving around unable to put down any roots.

But I'm gonna say exactly what you predicted.

Move into the cheapest rental dump that you can find and negotiate the rent down even further. Save hard for a year and your deposit will be more like £35k plus a few grand for emergencies. Your mortage rate could be nearer 2.89% than 4.89% and everything will be a lot more comfortable.

Take it from me, decorating isn't all it's craked up to be anyway. I much prefered it when the landlord took care of that kind of thing.

GMS

95% mortgages are few and far between.

Is there a family member with equity in their property? There could be options for you to borrow 100% of the purchase price but this would need a charge on a family member property. Not something to be taken lightly by all all parties though.

Other than that it will be a 95% mortgage or continue to rent and save for a bigger deposit. If you can save 10k in 6 months then another 6 months gives 20k which would open up 90% mortgages based on a purchase price of 175k.

Thrugelmir

Take a long hard look at where you spend your money. On £71k per annum income saving a reasonable deposit shouldn't take long if really want to buy a property.