First Time Mortgage - Don't have much of a deposit

matt2877

Hi guys, have been reading through some of your advice on here and it is really useful stuff but can't find exactly what I am looking for, so have decided to start a new thread to see if anybody can help me with advice

Basically Iam a 25 year old male looking to get a mortgage with my girlfriend.
We both currently live with parents,, Iam in full time employement earning £22221 per year before tax, my girlfriend is in part time work whilst studying at college and earns rougly £6000 per year.

We have been saving for a deposit whilst lookimg at houses, we currently have £2500 saved and have found a few houses we like the look of for between £80,000 - £100,000.

We have not been to see the bank yet and were aiming to save £5000 before we went to see them.

As far as I know we both have a good credit history. So say for a £100,000 mortgage has anybody got any idea what sort of deposit they would want with our circumstances?

Any help greatly appreciated

opinions4u

I wouldn't ssit down with a mortgage adviser yet.

10% deposit required.

Nationwide and Yorkshire Bank may let you get away with 5% deposit if you're a qualifying customer. But you'll pay through the nose for it in interest and fees.

For a £100k house I reckon you will need:

Deposit
Survey
Legal fees
Product fee

Aiming for £12k in savings.

ACG

There are a few lenders will do 95% and 1 who will do 100% if you have a guarantor. But in the main your looking at 10% deposit.

matt2877

Thanks guys, the £12K is a really frustrating figure to me, it just seems so far away, Iam extremely frustrated with not being able to get a house and really get my life started. How do you rate my chances of getting a mortgage with a 5% deposit with my current circumstances? Because that is another worry for me, that even with a deposit nobody will want to lend me the money because of my girlfriend being on a failry low wage. Also any idea how much the additional fees for survey, legal fees etc. would be?

BoGoF

In all honesty if you can only muster up a deposit of £2500 whilst staying with parents can you actually afford a mortgage in the amounts being talked about?

Have you any idea what a mortgage of £95,000 on a 90% deal will cost you?

matt2877

In all honesty I dont know what it will cost, please share. I have only recently started saving up the deposit, probably since about november

ACG

You might not have to outlay for legals, survey and admin fees.

Some lenders will include free legals/valuation and some will also allow you to add the admin fee to the loan.

Your still looking at about £8000 deposit, on an £80k mortgage.

matt2877

Is that based on our circumstances ACG? so I would be looking at a 10% deposit to get accepted?

BoGoF

matt2877 wrote: »

In all honesty I dont know what it will cost, please share. I have only recently started saving up the deposit, probably since about november

Depends on many factors, your LTV, term of mortgage but a quick play on the HSBC calculator shows that borrowing £90k over 30 years and you're looking at £450 ish per month. Over 25 years £500 per month. You will need £10k deposit though plus legal fees etc.

Plus you have the other costs of running your own home, insurances, tv licence, phone, gas/leccy...........the list is endless.

matt2877

BoGoF wrote: »

Depends on many factors, your LTV, term of mortgage but a quick play on the HSBC calculator shows that borrowing £90k over 30 years and you're looking at £450 ish per month. Over 25 years £500 per month. You will need £10k deposit though plus legal fees etc.

Plus you have the other costs of running your own home, insurances, tv licence, phone, gas/leccy...........the list is endless.

Thanks, £500 is the sort of figure i had in mind for the mortgage, I think this is managable between us whilst also having enough money for all the other things. I see owning our own house as a major step in life and I see it as holding the rest of my life up ... marriage... starting a family, this is why it is so frustrating

Thrugelmir

matt2877 wrote: »

I have only recently started saving up the deposit, probably since about november

Then don't be frustrated. Buying the house is only the first stage of a very long uphill climb. Once your g/f has full time employment then your situation will change considerably.