first time buyer advise on costs and new 5% scheme?

ktcoil

Hi guys me and my partney are both looking at now buying a house instead of paying dead money into a rented flat, we also want a garden as we both miss this, i am on about £15-£16,000 and my partner is on about £23,000 ish, we were looking at buying a house from 80,000 to £100,000, nothing too expensive as maybe in future we can look at getting a better house once that mortgadge is paid, could you estamate how much deposit, would you say about £5,000 for 80-100 thousend house? also what other costs is there, do you need solisiters,valiators etc? also heard about this new 5% scheme where you get there 5% to add to your 5% so you have the 10% then pay it as a extra loan or when you have paid your mortgadge?

thanks

SerialRenter

There are a few schemes endorsed by the government at the moment. It sounds like you're in the early stages of research for house buying, so heres a few links to get you started:

Schemes:
https://www.gov.uk/affordable-home-ownership-schemes/overview

deposit:
http://www.which.co.uk/money/mortgages-and-property/guides/mortgage-deposit-explained/how-much-deposit-do-i-need-for-a-mortgage/

derbyshirenick

While there are 5% deposit mortgages around, they are not very favorable in terms of cost (normal 5% mortgage).

Ideally you will need 10% so 8-10k for the deposit.

You will need to budget 900-1200 for solicitor fees.

No stamp duty on a house of that price so thats a win.

Chances are at that price there will be a fair bit to be done when moving in. I would personally want a good 2-5k spare for other costs once moved.

I personally wouldn't consider looking until you have at least 13-14k in the bank and that's at the low end.

If you really cannot wait and need a 5% deposit deal, look at Nationwide's Save to Buy account. If you pay in £50 a month for six months they will then open up the ability to apply for a 5% deposit mortgage.

[Deleted User]

Good luck with your purchase, I don't really know about your mortgage options, but I thought I would let you know the other one-off costs are not to be sneezed at, I spent the following:

1650 solicitors fees and searches
1200 mortgage fees to the bank and broker
1000 on movers, plumbers, electricians
1500 on appliances and furniture

6 months after moving in, the boiler packed up, and so I've just forked out another 1600 on buying a new one and getting it installed. That's my choice, I might have been able to get away with fixing it for a few hundred, but I preferred to invest for the future.

So to date about £7k, which is more than I thought it would be.

Obviously a lot of this will depend what furniture you have, and how much work your new place needs to be livable etc. I had no furniture or appliances (though managed to get some cheap from friends and family) and had to get new oven, hob, and locks.