Is £30K deposit enough?

North_London_Girl

We're a young couple looking to purchase our first home later this year. We've got £30K saved currently, both have a salaries of £46K.

Aiming to buy something around £250 - £275k.

Do you think this deposit is passable or are we being unrealistic?

julicorn

Is that £46k each or together? If it's each, then that sounds fine (depending on credit history etc), if it's combined, then you're likely a little short for most lenders... as a rule of thumb, 4.5 times your salary is pretty common, so they'd probably lend you something around £207k.
(The way you phrased it made me think £46k, just found it unusual you're both on exactly the same salary).

julicorn

Also, a 10% deposit is generally fine, but you tend to get better rates with higher deposits

North_London_Girl

Hi Julicorn, thanks for your response. Yup we're both on £46K each so £92K combined income.

Credit history is good - so fingers crossed it will all go OK!

kinger101

You're fine with that. TBH, the differences between 85% and 90% mortgages aren't all that much today - about 0.5%. It's certainly not worth delaying things to get into the 85% bracket. So you've enough for 10% deposit, legal & professional fees and stamp duty, with some rainy day money left.