First Time Buyers - How Much Deposit Needed?

A_Couple_In_Love

Hi forum, first post here!

Me and my partner, both aged 22, are looking for are first home to buy.

We are starting to save for are mortgage, but we are wondering how much exactly we need to save for are deposit.

Is 10% deposit for a mortgage easy to find? We are looking for a house for around £90,000.

Age: 22
Area Interested In: Wigan
Joint Annual Income: £22,000
Joint Monthly Income £1,800

We have no bad credit histories and no loans, only problem is, we have only been employed for one year, would this be a problem?

We look forward to your replies.

Thanks in advance.

Southernman

£9k plus an extra 3-4k for solicitors, surveyors and if need be funds for furniture and redecoration etc.

Jimbo1976

As much as you can. There are a few lenders offering 95% loans but the decline rates on applications are very high. The rates borrowers have to pay are high as well. Most lenders do offer 90% loans but the bigger the deposit you can save the lower the rate. The lack of employment history shouldn't be an issue. Were you students before?

Make you you are both on the electoral register as that will improve your chances of your mortgage application being accepted

ACG

10% deposit should be fine presuming you will pass a credit check.

I wouldnt have thought you would need £3-4k for solicitors, £1k should be enough presuming its a straigth forward purchase.

Im just waiting for everything to complete on a purchase price of £86k, my solicitors (who are based quite close to you in leigh) charged under £1k including all the searches.

Being employed for 1 year is fine, they may ask for a longer employment history than that depending on the lender, but so long as you have been with the same employer for the last 12 months i cant see there being an issue on that front.

All in all, it sounds like a straight forward enough case so it should (famous last words) all run fairly smoothly for you.

Suarez

My solicitor was £350 plus VAT. Mortgage Valuation Fee was £280.

Other mortgage fees were £999 but these were added to the mortgage.

harvey115

Suarez wrote: »

My solicitor was £350 plus VAT. Mortgage Valuation Fee was £280.

Other mortgage fees were £999 but these were added to the mortgage.

All of this depends on the house price. The higher the house price, the higher the costs.

Suarez

harvey115 wrote: »

All of this depends on the house price. The higher the house price, the higher the costs.

They said they were looking to buy a place at £90,000....

A_Couple_In_Love

Thank you for all of your replies. Are the chances good of getting a house around £90,000, with around £12,000 saved for deposit, fees etc.

This is going off a 10% mortgage, are these hard to find?

Thanks.

Suarez

A_Couple_In_Love wrote: »

Thank you for all of your replies. Are the chances good of getting a house around £90,000, with around £12,000 saved for deposit, fees etc.

That will depend on the area you are looking..and £9,000 deposit and £3,000 fees is plenty.

This is going off a 10% mortgage, are these hard to find?

Thanks.

If you have no defaults and a decent credit history you should have no problem.