Mortgage deposit advice?

MortgageDepositHelp

Good morning MSE!

Myself and my SO are looking at buying a house together - however, would like to, if possible, skip that ftb style property which we'll want to move out of quickly.

But the problem - as always - is the deposit.

We're really lucky money wise, in that now we both earn good salaries;

Me; £45k + OT and Bonuses up to £65k
SO; £35k

So our total take home each month is around £6k (give or take). Trouble is, that we're renting a property at the moment, and so it's tough to save - we're saving about £1k per month.

We've saved £17k so far but really need to look at a house around the £300k mark if we want a house with a few bedrooms which we can stay in for a while (would be lovely to have a couple of new additions in a few years time!)

I've worked out that i probably need about £45k to make this happen (10% deposit, stamp duty, solicitors fees etc.)

And so, I was going to ask you guys, is it viable to borrow the rest of the deposit? I can get about £7k on 0%, and can source the loans... but will this affect me being able to get a mortgage?

I know that we can afford the repayments (it would be the same as the £1k we're putting aside each month to save) - but is this viable? Or are there any other suggestions?

Thanks for being amazing guys

Chris

[Deleted User]

In a word - no. A borrowed deposit isn't a deposit.

Your outgoings seem very high if you are only saving £1k a month while there are only two of you. Kids are very expensive and will more than swallow up your £1k surplus in childcare etc.

Look at cutting back where you can. If you could save £2k a month, you'd have your deposit in two years, with what you have already saved.

japmis

Erm, you take home 6k a month but only manage to save 1k?

Even if your rent is a grand and then bills and food etc is a grand (which is generous), where's the other 4 grand going?!

Do a strict budget and cut all luxuries. You should be able to save at least 25% of your take home pay.

_Andy_

No, you can't.

Mortgage lender's wont accept personal loan funds as a source of deposit.

Doubt very much you'll find a personal loan provider to lend for that purpose anyway.

back to the drawing board.

StuC75

Does seem to be a hole in your figures? as you are only saving £1k a month, how does your rent compare to this? and what the mortgage would be on 300k property (particularly with only a 10% deposit)...

sulphate

Agree with the others, sounds like you need to cut your cloth a bit. Your outgoings are huge and you should be able to save a lot more than £1k a month on the salaries you're earning.

A lot of FTBs would love to buy a £300k house but it's not realistic for them. If you wanted to get on the property ladder sooner rather than later you could forego this dream and buy a smaller place now, as your alternative is probably renting for another 2~ years before buying.

Odette

My partner and I earn half what you do but save twice as much per month. There really isnt any way to do this easily anymore without saving. I suggest you save 30k (10%) and then visit a bank or broker, but you will need that extra 13k. You could easliy do it in 6 months according to your income.

jimjames

You need to document your expenses and work out where your money is going.

It should be possible to save a lot more than £1k per month. If buying a house is really that important to you then there are sacrifices you'll need to make for it to happen.