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

Suarez

matt2877 wrote: »

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?

I am on half you wage and have saved £5000 in the last year. If you want a house that much you will cut out luxuries.

I go on a couple of cheap breaks a year in the UK rather than expensive holidays and never go out drinking any more.

Im not saying put your life on hold but I would rather have my own place instead of going out, holidaying etc.

That will all come after I have saved

Suarez

Oh and the difference between monthly repayments with a 10% deposit and 15% deposit is quite considerable!

samtoby

matt2877 wrote: »

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

As much as I understand your situation (I am in the same) why are you wanting to rush making probably the largest purchase of your life?!

:eek:Some people have to take 6 years not six months to save a deposit!:eek:

12k is 8k less than I need to save and I earn less than your combined earnings that you will go forward with a mortgage for.

A 100% mortgage will cost you more in the long run as the more deposit you place down the less interest you will pay. I'd rather stay at home longer than be paying through the nose for it.

Take time to save for your deposit, fees and furniture and be prepared. Buying a property is expensive and stressful and having not enough money will only frustrate you.

I wouldn't normally say this; but be patient while you are in a situation where you can save!:j

kingstreet

I was curious about these products, so I checked them via Mortgage Brain.

johndjs wrote: »

Apologies for late reply.

95% Mortgages

Ulster Bank 3.79 5 year fixed (shared equity)

This product is only available on shared equity in Northern Ireland

Market Harborough 3.99

This product is only available when a family member deposits 20% in cash in a charged savings account with the society

Lloyds 3.94 (existing customers only) otherwise 4.04 %

This is a Lloyds Scotland Spearhead product and is part of Family Help deal with 20% deposit needed from family member to put in a charged Lloyds savings account.

Halifax 4.49

This product only appears for existing Halifax borrowers. Not available to first time buyers. The rate appears higher.