How much deposit required on £400K home?

Anton123

I know there are variables like credit history, job, and so on, but any idea roughly how much deposit a bank would ask for in current climate? I am looking to buy my first house and I have no idea. I haven't inquired about anything with the banks yet and would like some advice here first.

MagicCats

Anton123 wrote: »

I know there are variables like credit history, job, and so on, but any idea roughly how much deposit a bank would ask for in current climate? I am looking to buy my first house and I have no idea. I haven't inquired about anything with the banks yet and would like some advice here first.

Well......Given that mortgages tend to work (roughly) in multiples of 5% in terms of Loan to Value (LTV) e.g. 75, 80, 85 etc then you just have to work out how much you woud like, or rather need to place down. For example 5% down gets you your 95% mortgage.

In all honesty though 400k on a first home, and you're asking about deposits? I'll give you the benefit of the doubt though

You have correctly identified that credit history etc will play a part. I'd hazard a guess at 10% minimum given the loan size. Why not list your current credit situation - defaults, late payments etc, other financials such as income and credit commitments and one of the resident brokers will help you out

Anton123

Well, £400K on a first home may seem a lot, but I've been out of university for a number of years now and have saved up a good pile of cash so can pay a substantial amount upfront. At first I lived at parents house for a few years after uni and then moved into a friend's house, renting one room so I was able to save money over the years. But two years ago I have manged to get a very good paying job which I actually do from home. so I think mortgage shouldn't be a problem.

However, I have given serious considerations to moving to the US as I am completely fed up with British weather. Not only you get more house for your money in America in most parts of the country compared to Britain, you also get consistent weather in most parts of the country i.e. a summer being summer, winter being winter. There won't be a problem with the job as its an internet company and I can work from anywhere. But leaving London won't be an easy decision because of family and friends, and despite the weather, I still really like it here. But still, weather is a major issue. We probably haven't had a summer to speak of the last 5 years.

Supreme_2

You might want to check on how difficult it is to get a visa to move to the US... In fact i'd go so far as to say, unless you either have a job based there that an American can't do, or have a lot of money, then you have an incredibly small chance of making it happen.

holly_hobby

400K = 90% LTV generally speaking with the main players - that is for a primary residence in England of course (with sufficient and acceptable supporting income, clean credit record and a satisfactory property survey).

If (from reading your above post) you are looking to secure a mge here in the UK, to buy a property in the US - you'll find no takers I'm afraid. (notwithstanding the working visa issues/requirements ... which are complex in the US).

Hope this helps

Holly

Mands

Anton123 wrote: »

However, I have given serious considerations to moving to the US as I am completely fed up with British weather. Not only you get more house for your money in America in most parts of the country compared to Britain, you also get consistent weather in most parts of the country i.e. a summer being summer, winter being winter. There won't be a problem with the job as its an internet company and I can work from anywhere.

Nice! Any particular part of the US in mind? Too far north and you'll get an awful lot of winter; too far south and there may be no winter at all.

Will your company sponsor your for a visa? Depending on the type of visa they may need to show that they can't find anyone in the US with a comparable skillset to yours.

The other thing to consider is vacation time: 5.6 weeks is the UK legal minimum whereas one week plus statutory holidays is not uncommon in the US, and new starters sometimes can't take any vacation in their first year.

Mands

claire16c

2 years ago we had a fantastic summer, last years wasnt all that bad, and last winter hardly any rain at all - unless youre saying you want more rain as its winter?? And there are plenty of parts of the US that have bad weather and mixed up seasons, not to mention hurricanes etc.

Yes you get more house for your money in a lot of places in the US - definitely not all (and have you seen what they build houses of there? they look like theyre made of mdf no wonder theyre cheaper lol), but you also have to pay a lot more for things like groceries, health care, phone bills etc there which are all more expensive than here.

And unless you have a visa you wont be going anywhere. And youd need to build up your credit record there if you wanted to take out a mortgage.

beachie

Worth adding that the more deposit you put down the less interest you will be paying.

How much do you earn (if you don't mind me asking) as this will dictate how much you can borrow?

MagicCats

Anton123 wrote: »

Well, £400K on a first home may seem a lot, but I've been out of university for a number of years now and have saved up a good pile of cash so can pay a substantial amount upfront. At first I lived at parents house for a few years after uni and then moved into a friend's house, renting one room so I was able to save money over the years. But two years ago I have manged to get a very good paying job which I actually do from home. so I think mortgage shouldn't be a problem.

I wasn't trying to be nasty, more playful. You'd be surprised how many dreamers post on the board....... It sounds like you're in a good position to buy in the UK. My advice woud be to obtain all three credit agency reports, go through these with a fine tooth comb. Any issues you find post them up; people here can advise and help. Then it's a case of crunching your numbers to work out roughly your deposit and fees as you'd be surprised at the cost of solicitors etc. Then find a broker to see if it is achievable.


Good luck :beer:

MoneySaverLog

Getting a Green Card is extremely difficult in America, If you really want to go though, other than getting a work sponsor or marrying an American, you might want to look into buying up a rental in Florida and retiring there.

I believe a lot of Brits get hold of a B-2 tourist visa and stop there during the winter months, renting out the property during the summer. A B2 allows a 6 month stay. Then fly back to the UK for 6 months in the summer (or may be look elsewhere given our summers of late).