Low deposit will i get accepted?

phoenixcat9

Hi,

I would like to buy my first house towards the end of next year. I earn £40k a year and i want to buy a flat in south london for around £180k. I have £10k at the moment deposit wise plus i am going to sell my sports car. So i am hoping to have around £25k to cover deposit fees etc. I have a good credit rating. I was turned down for a loan from my bank earlier on this year, they asked me to pay off my overdraft first. I did that and was accepted 2 months later. The loan will be paid off before I apply.
Do you think £25k will be enough and what do you think my chances of being accepted are? I have no credit card debt or overdraft. I am concerned as i keep hearing stories about people being turned down with much larger deposits than me and earning more. Is there anything i can do to increase my chances of getting accepted next year?

Thanks in advance.

somethingcorporate

Pull your credit files from the 3 agencies (just the £2 statutory ones) and make sure these are all clean.

Keep your payments up to date and do not take out too much more credit.

Make sure you are on the electoral roll and stay in the same job if you can.

All this will help.

Also, when you come to looking for a mortgage use a broker to do the leg-work and save yourself unnecessary applications.

10% deposit is still attainable in the current climate.

LawrenceAMN

Your chances of obtaining a mortgage with a 15% deposit will be much higher than with a 10% deposit.

Lenders credit scoring on 10% deposit deals is quite aggressive.

GMS

Lawrence you need to amend your signature. It is against forum rules