100% mortgage

NOVAMET21

Couple of things already mentioned here.


- Save 5% deposit, Stamp Duty and other fees. For house worth £375K+, all this would be about £29K+ excluding new furniture and appliances if needed. Takes time to save £29K+ but then also if you can afford that kind of mortgage then your household income must be in the region of £70-£75K? I was thinking maybe look into cheaper home to get into property ladder might be an option but nowadays the house prices are very expensive.


- Look at other housing scheme like already mentioned Help to Buy but still need 5% deposit and stamp duty and other fees.


- I know family thing is mentioned here but could anyone lend you the deposit as a gift but still then it is a lot of money to be gifted. So maybe out of question.


- The only other thing I can think of is shared ownership scheme. I know it is not everyone's cup of tea but in your case it might work but you need to save for few months. The salary limit was £60,000 but not sure if the limit is gone up to £80,000 due to rapid increase in house price.


Let say the house price is £375,000 and even though your salary allows you to purchase the whole house but you don't have enough deposit. So the minimum share they will provide is 25%. So 25% of £375,000 is £93,750. Now out of this £93,750, lets say you put down 5% deposit = £4,687.5


So you will be borrowing £89,062.5 and depending on the interest rate and term your mortgage will vary. But lets say it is £450 per month. Now SO has also another element of rent. Roughly calculating this would be £630 and any service charge normally £5-£15 if it is a house. So in total you would be looking at £1,100 per month. So does this figure look lot less than your rent? If it isn't then forget about it lol.


Now the trick is this. The salary of £75k will give you net around £4K per month or under that if pension and student finance taken into account. Now you will have plenty of money to save after mortgage, rent, utilities and food. Not sure if you have got loans or any other committed outgoings but you could easily save £1K per month. In 2 years that's £24K so you might be able to sell your SO house and buy fully mortgaged house. Not to mention, you don't have to pay stamp duty in SO scheme as the share is below £125,000.

saverbuyer

agurung wrote: »

Couple of things already mentioned here.


- Save 5% deposit, Stamp Duty and other fees. For house worth £375K+, all this would be about £29K+ excluding new furniture and appliances if needed. Takes time to save £29K+ but then also if you can afford that kind of mortgage then your household income must be in the region of £70-£75K? I was thinking maybe look into cheaper home to get into property ladder might be an option but nowadays the house prices are very expensive.

At 75k salary that mortgage would be 4.75 x annual salary. IMO pretty scary. Income would need to much closer to 100k.

Pixie5740

HTL Equity Loan is capped at 4.5 x income.

downhillfast

Based on my very own recent experience - we were looking to put an offer in on a £380k property to fund with a 95% mortgage... although our affordability allowed us to afford a loan in excess of £400k the lender (and I think many do this on 95% mortgages) capped max borrowing at £350k. Luckily we've had an offer accepted that makes the loan come under the £350k cap.

logan77

Maybe the original poster could share their monthly household income figure and what's left after expenses, then we can see what is reasonable.

junglist_matty

We have just moved and taken a similar amount of mortgage.... We earn approx 100k between us; how can you not save 20000 in a year? Just sell your expensive cars or whatever else youre paying silly money for and save, it's not hard! If you can't then surely a 370k mortgage is out of your reach..... our monthly repayments are around 2k a month on a 5 year fixed with 20year term.