5% Mortgage or push for 10%

wjr4

AdrianC wrote: »

Saving another £13k is "unrealistic"?

It's unrealistic when you have other bills to pay and rent. We are lucky enough to be able to live with our parent's for a few months rather than pay £800+ rent each month. Obviously we should have started saving at a younger age..

AdrianC

rjw4 wrote: »

It's unrealistic when you have other bills to pay and rent.

Yet the first £13k wasn't?

Obviously we should have started saving at a younger age..

Or cut down on the other bills. If you're paying too large a proportion of your income as rent, you'd fail affordability checks as part of the references. A typical rent affordability calculator suggests a minimum household income of £24k for £800/mo rent. For one person's income, that'd be a take-home of £1,600 or so.

To get a £234k-£247k mortgage (and let's not forget the fees plus your post-purchase safety net), you'd have to be earning a LOT more than that - a single £24k income wouldn't qualify you for a mortgage of even half that.

It's all about your priorities.

wjr4

AdrianC wrote: »

Yet the first £13k wasn't?



Or cut down on the other bills. If you're paying too large a proportion of your income as rent, you'd fail affordability checks as part of the references. A typical rent affordability calculator suggests a minimum household income of £24k for £800/mo rent. For one person's income, that'd be a take-home of £1,600 or so.

To get a £234k-£247k mortgage (and let's not forget the fees plus your post-purchase safety net), you'd have to be earning a LOT more than that - a single £24k income wouldn't qualify you for a mortgage of even half that.

It's all about your priorities.

We aren't at the first £13,000 yet - that's the issue! If we were there then maybe it wouldn't feel so much further for another £13,000 - & then obviously saving for stamp duty & fees etc.

We've cut down our bills to everything essential. My mobile contract is up soon so switching to a sim-only deal will save a lot each month/year! Luckily we aren't paying much rent (apart from 'house keep') to the parents now so that is how we are managing to save the first 5%. If it wasn't for living with parents it would be very hard to save as much as we are each month currently.

We both have earnings that will cover the mortgage affordability so that wouldn't be an issue & we are ideally looking for a house under £250k - not really possible though! I save 60% of my income but the other 35% going on bills and 5% left for adhoc/build up the amount in my bank - and that is living with my parents!

squirrel99

I had similar dilemma and was initially planning to save for 10% or even 15% and keep renting. However, after speaking to mortgage broker I thought this through and went ahead with a purchase with 5% deposit.

Not everyone will agree with this, but I figured that as long as I buy without stretching my budget and choose a property that's suitable to me long term I will be fine.

My mortgage will be less than I currently pay for rent and is perfectly suitable for 5-10 years, so I can stay there in case prices drop and I cannot sell.

People will recommend different things, you have to decide what's right for you.