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Target for deposit
Simon11
Posts: 806 Forumite
Hi All
I'm now looking to set myself a goal for a deposit to purchase a place to live in London. I'm looking at a 1-2 bed property on the market costing around £200k, although if I wish to get a very nice property/location, I'm looking at £250k.
I currently have £20k saved up and now living with family, so hopefully I can save a lot of money towards a property (+ money from rental - see below). I am trying to decide what to set my goal for a deposit (including fees) so that I can get a decent mortgage rate. What would you set the target at?
Would £40k + £5k for fee be suitable for getting a property at the lower end? Maybe £50k + £5k fees for a better property?
I do own a property in another city (which may complicate matters), brought for £125k with £55k of deposit. I am currently letting this out, with the profit going towards my new place. My mortgage on this property is a lifetime tracker at 2.29% + base rate. I intend to keep this property to let, as I currently earn a decent return on the property and the price should rise substantially if HS2 gets build fingers x!
With this property I already own, would this affect the size of deposit needed for a home in London? Secondly, would it be worth taking some equity out of the property?
Thanks for taking the time to read this and responding,
Simon
I'm now looking to set myself a goal for a deposit to purchase a place to live in London. I'm looking at a 1-2 bed property on the market costing around £200k, although if I wish to get a very nice property/location, I'm looking at £250k.
I currently have £20k saved up and now living with family, so hopefully I can save a lot of money towards a property (+ money from rental - see below). I am trying to decide what to set my goal for a deposit (including fees) so that I can get a decent mortgage rate. What would you set the target at?
Would £40k + £5k for fee be suitable for getting a property at the lower end? Maybe £50k + £5k fees for a better property?
I do own a property in another city (which may complicate matters), brought for £125k with £55k of deposit. I am currently letting this out, with the profit going towards my new place. My mortgage on this property is a lifetime tracker at 2.29% + base rate. I intend to keep this property to let, as I currently earn a decent return on the property and the price should rise substantially if HS2 gets build fingers x!
With this property I already own, would this affect the size of deposit needed for a home in London? Secondly, would it be worth taking some equity out of the property?
Thanks for taking the time to read this and responding,
Simon
"No likey no need to hit thanks button!":p
However its always nice to be thanked if you feel mine and other people's posts here offer great advice:D So hit the button if you likey:rotfl:
0
Comments
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Do you have consent-to-let from your lender? I doubt that life-time tracker at 2.29% will be available to you once you apply for another residential mortgage. You'll need a BTL one but you could suck out 75% of the equity towards another property.
The larger the deposit, the better the rate you will be offered.0 -
Hi, yes I have consent from my lender for 12 months. After 12 months, I shall then reconsent to let which is fine with HSBC. I'm not sure why my existing property mortgage rate would increase as a result of purchasing the second place? How would the first property mortgage company know?
I understand that on applying for a mortgage for a second home, they will take this into consideration, but how would the first home mortgage know about this?"No likey no need to hit thanks button!":pHowever its always nice to be thanked if you feel mine and other people's posts here offer great advice:D So hit the button if you likey:rotfl:0 -
Do not rely on being able to get open-ended consent-to-let on the property you have now. That's not often the case even where people only own the one property.0
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