How soon can I buy a flat?

Bored

I've recently moved back to my parent's house after years of renting in order to save for a flat. While I am grateful for the opportunity to live here and save a large chunk of my paycheck, it is not an ideal situation and I am keen to move out as soon as possible.

How early can I start the process? Do I need to wait until I have at least 5% in cash of the total property purchase? Or could I get a mortgage in principle agreed sooner and make an offer while I am still saving?

Thanks in advance

steampowered

You can get a mortgage in principle and make offers while you are still saving.

There is quite a lot of stuff to go through before you pay big money - finding a place; getting an offer accepted; getting a survey done; getting the searches done. This all takes several weeks.

You will need to have the funds to exchange contracts, as that is when you will need to pay the deposit.

Remember to factor in things like stamp duty and solicitor's fees.

Cakeguts

You will need more than 5% of the properties total value as you may need 10% deposit to get a mortgage. Then you have to pay all the fees on top of that.

Bored

Cakeguts wrote: »

You will need more than 5% of the properties total value as you may need 10% deposit to get a mortgage. Then you have to pay all the fees on top of that.

I was hoping to get a 95% mortgage and save for the fees as I was looking for a flat and sorting the associated paperwork, etc - do you not think that this would be feasible?

steampowered

95% mortgages have come back onto the market, so this is possible.

You will pay a higher interest rate for a 95% mortgage than a 90% mortgage. You can always remortgage in a few years when you've built up more equity.