How much saved to really get the ball rolling?

howieuk1878

Hi all,

Myself and my partner are saving for our first house and looking at a 10% deposit. I have read numerous articles and threads about golden rules for what the percentage of income should go towards mortgage repayments and what hidden fees and moving costs are like but I haven't read anywhere what point to seek a mortgage broker or an offer in principle

For example let's say we reach the 10% deposit do we approach the lenders then or do we wait until we have the 10% plus enough to cover fees and surveys OR until we have 10% plus fees plus moving costs (which can take the amount from 12k to 18k)

I ask having no idea when lenders are likely to entertain or how long the process takes etc I would hate to save the full 18k to find it takes 6 months and that time could have been spent saving the rest

Hope that makes sense to you all

Thanks in advance

cakeforbrains

The trouble is, conveyancing can take six months or it can take six weeks, depending on the chain or just how quickly people move. You won't know until you're in it.

You can seek a broker at any time. As I understand it Agreements in Principal only last a couple of months, but then again they're just to give you an idea/a little peace of mind and are therefore not strictly necessary.

If you save the £18k before you start and then it all takes six months (or more - it might take a while to find a house you like) then you can always keep saving for your New House Ikea Trip Fund.

amnblog

Wait until you are fully financed.


Otherwise if their is a problem with the remainder of the funds you may not be able to complete on time, or at all on the purchase, and you will waste money and frustrate all parties.