12k Deposit am I Ready to Buy a House

DevilsBakBone

Hi,

I have just over 12k deposit and have been advised by my bank that i could go up to a 180k mortgage. With these numbers taken into consideration, would i now be able to start getting a mortgage in principal. Or do i need a bigger deposit still?

Thanks for your help. :beer:

hop3y

It totally depends on a number of factors including income, expenditure etc.

I'd recommend speaking to an IFA.

KaceyTray

Agree with the above. How much you earn in a month, the costs of the house you want to buy etc need to be considered. I am a little surprised that you were given such a high mortgage offer/advice, when I bought my first property I gave a deposit of £38,000 on a £112,000 flat, I think the minimum I could have given for the flat was £20,000 or something

Jitterbug123

It depends on many factors, one of the major one being your salary and outgoing financial commitments.

I earn £35k pa, have a deposit of £20k and was told I could borrow up to approx £175k. (90LTV)

I have no dependents, very few outgoings, but do have a student loan. So it's all about affordability.

AdrianC

£9k minimum 5% deposit, £3k for fees and legals.

My gut-feel immediate response is "If you're earning well enough (£60kish?) to qualify for that big a loan at 95% LTV, and you really want to buy a place, how come you haven't managed to save more of a deposit?"

AdrianC

Jitterbug123 wrote: »

I earn £35k pa, have a deposit of £20k and was told I could borrow up to approx £175k. (90LTV)

Five times gross salary? Really? This side of 2008?

DevilsBakBone

I had a mortgage meeting with my Bank (Barclays), based on my earnings, Credit Rating (I had the report with me), my debt (zero) and my available income, they offered upto 180k.

This was in January the only problem is i had been spending money like hotcakes. I’m currently saving around 1k a month and living as though i had a mortgage to get used to it.

I have only had one meeting so maybe there is a reality check coming my way.

I have been looking through the MSE guide for first time buys and called London and Country Mortgages, will be interesting to see what they say.

hop3y

Have you tried the calculators available online? They usually give you a roundabout figure, but an IFA is seriously the best way to go.

Jitterbug123

AdrianC wrote: »

Five times gross salary? Really? This side of 2008?

I am not actually borrowing that much, because I don't want to borrow more than I personally feel I can pay out in mortgage payments a month.

w00519772

Jitterbug123 wrote: »

I am not actually borrowing that much, because I don't want to borrow more than I personally feel I can pay out in mortgage payments a month.

how much did you borrow? Where are you buying? I am in a similar position to you.

Thrugelmir

DevilsBakBone wrote: »

This was in January

MMR has changed the lending market since then.