First time buyer in need of expert advice..

B1A1

Hello, I would like to know if it is worth buying a house with 5% deposit?

Apologies if this has been discussed previously,

Debtslayer

It depends on different circumstances:
Do you currently rent and how much are you paying in rent
How long will it take you to save a 10% or more deposit?
As well as 5% deposit do you also have sufficient funds for solicitors fees etc?
Do you have any debts?
I was advise by a mortgage broker that there were far less 95% mortgages available so it was better if I could put down 10%, but that doesn't mean they are not available and if you are paying significant amounts in rent then would probably be worth it

B1A1

Debtslayer wrote: »

It depends on different circumstances:
Do you currently rent and how much are you paying in rent
How long will it take you to save a 10% or more deposit?
As well as 5% deposit do you also have sufficient funds for solicitors fees etc?
Do you have any debts?
I was advise by a mortgage broker that there were far less 95% mortgages available so it was better if I could put down 10%, but that doesn't mean they are not available and if you are paying significant amounts in rent then would probably be worth it

Thank you for your reply , ok to PM you?

rtho782

It can be.

Bear in mind that by the time you pay fees and taxes, you will be spending a lot more than the headline 5%.

I'm about to buy a house with only a 5% deposit, but we have a 2 year fixed mortgage with a 17 year term, will overpay that to the equivalent of a 9 year mortgage, then remortgage after the 2 years at a much lower LTV.

This means we are paying 4% for 2 years, but house prices are going up so fast we think we will still be better off.

anotheruser

You can use the help to buy ISA as part of the deposit correct?

The difference between 5% and 10% is manageable for us so we'll opt for that instead of the 5%.

B1A1

rtho782 wrote: »

It can be.

Bear in mind that by the time you pay fees and taxes, you will be spending a lot more than the headline 5%.

I'm about to buy a house with only a 5% deposit, but we have a 2 year fixed mortgage with a 17 year term, will overpay that to the equivalent of a 9 year mortgage, then remortgage after the 2 years at a much lower LTV.

This means we are paying 4% for 2 years, but house prices are going up so fast we think we will still be better off.

Yes i have solicitor fees, surveyor fees etc separate,
you are right house prices are going up fast!

If you make consistent overpayments does that mean by the time you refresh your mortgage that the interest will be lower? or could it be lower regardless of making over payments? (hope that makes sense)

B1A1

anotheruser wrote: »

You can use the help to buy ISA as part of the deposit correct?

The difference between 5% and 10% is manageable for us so we'll opt for that instead of the 5%.

Yes you can use the help to buy isa but it has its flaws.. as in - you can only save a certain amount in that isa and you can't open a help to buy isa if you already have a cash isa opened in the same tax year,