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Couple of questions
AdamMc90
Posts: 49 Forumite
Hi guys - couple of FTB questions if anyone could lend an ear that would be much appreciated.
1) Is it worth saving for 25% deposit rather than 20+%? We're looking at houses around 170k so 42.5k deposit for 25% which on top market deals from comparison sites shows inital rate 2.68% then SRV 4.49% (3 year fixed), however if we put down a 40k deposit comparison site shows same initial rate and SVR which is £11.45 difference per month in monthly repayments, which over the 3 year term is £412.20 so is it really worth putting down £2.5k to save £412.20 in the short term? Money that would otherwise be used as a cushion / redecorate etc. I appreciate bigger deposit less interest we'd pay etc but while we're finding our feet and making the house how we'd like it I think £2.5k now could be more beneficial to us rather than £412.20 over 3 years.
2) Typically - what are our chances of being accepted on these lowest rate deals? Right, I know thats a bit of a how long is a piece of string question but I mean, is it common to get the lowest rates or are these only for the squeakiest of clean credit reports with huge deposits? Or when doing my calculations should I use a more middle ground comparison rather than top of the line? My credit report isn't bad, its verging on good I'd be tempted to say, but there are about 2/3 cash withdrawals on a CC a couple of years ago but with the market looking at affordability more than x4.5 your salary I feel that could cost me.
They're my main concerns at the moment and I don't want to put people off with an essay (possibly too late) so think I'll stop here.
Thanks for your input whatever it may be
1) Is it worth saving for 25% deposit rather than 20+%? We're looking at houses around 170k so 42.5k deposit for 25% which on top market deals from comparison sites shows inital rate 2.68% then SRV 4.49% (3 year fixed), however if we put down a 40k deposit comparison site shows same initial rate and SVR which is £11.45 difference per month in monthly repayments, which over the 3 year term is £412.20 so is it really worth putting down £2.5k to save £412.20 in the short term? Money that would otherwise be used as a cushion / redecorate etc. I appreciate bigger deposit less interest we'd pay etc but while we're finding our feet and making the house how we'd like it I think £2.5k now could be more beneficial to us rather than £412.20 over 3 years.
2) Typically - what are our chances of being accepted on these lowest rate deals? Right, I know thats a bit of a how long is a piece of string question but I mean, is it common to get the lowest rates or are these only for the squeakiest of clean credit reports with huge deposits? Or when doing my calculations should I use a more middle ground comparison rather than top of the line? My credit report isn't bad, its verging on good I'd be tempted to say, but there are about 2/3 cash withdrawals on a CC a couple of years ago but with the market looking at affordability more than x4.5 your salary I feel that could cost me.
They're my main concerns at the moment and I don't want to put people off with an essay (possibly too late) so think I'll stop here.
Thanks for your input whatever it may be
0
Comments
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You will get better rates under 75% than you will for under 80% - so yes, worth saving!0
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Not all decisions can be based purely on financial grounds. When the right property comes along you have to make your move. So I'd keep an open mind.0
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I agree Thrugelmir, I would definitely consider it worth it to pay more for a house we love rather than save money on a house we consider ok! I suppose its about finding the balance.
Do you know what lenders, or where I could find what lenders offer reduced rates on 75% LTV? As I say I'm struggling to find any deals.0
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