5% deposit a good idea?

getmore4less

RoisinDove said:

I've only used the calculator on Rightmove which is quite basic, but it looks like a monthly repayment on a 300K property using a 5% deposit would be about £1250, which is similar to rent. No idea how realistic this is.

I'm not sure about over paying tbh as I haven't looked into this yet. Do you commit to paying more for a fixed time or can you just pay whatever you want each month? 

285k @4% over 35 years would be around £1250

not all the payment is interest if that is close  to  yours around 25% is capital(savings)

Here is the table for rate and term how much of you 1st payment is capital(savings)

R\Y	05	10	15	20	25	30	35	40
00.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
00.50%	97.53%	95.12%	92.78%	90.49%	88.25%	86.07%	83.95%	81.88%
01.00%	95.12%	90.49%	86.08%	81.88%	77.89%	74.09%	70.48%	67.04%
01.50%	92.78%	86.08%	79.86%	74.10%	68.75%	63.78%	59.17%	54.90%
02.00%	90.49%	81.89%	74.10%	67.05%	60.68%	54.91%	49.69%	44.96%
02.50%	88.26%	77.90%	68.76%	60.68%	53.56%	47.27%	41.72%	36.83%
03.00%	86.09%	74.11%	63.80%	54.92%	47.28%	40.70%	35.04%	30.16%
03.50%	83.97%	70.50%	59.20%	49.71%	41.74%	35.05%	29.43%	24.71%
04.00%	81.90%	67.08%	54.94%	44.99%	36.85%	30.18%	24.72%	20.24%
04.50%	79.89%	63.82%	50.98%	40.73%	32.53%	25.99%	20.76%	16.59%
05.00%	77.92%	60.72%	47.31%	36.86%	28.72%	22.38%	17.44%	13.59%

Angela_D_3

RoisinDove said:

moneysavinghero said:

House prices are going up because everyone is having the same thoughts as you - they must buy a house now or they are going to miss out because prices keep rising so they join in the 'i will buy something i am not such i can afford' game. This is a self-fuelling and is how bubbles form. It can't last for ever and must at least cool down if not pop (crashy has his fingers crossed) at some point.

But it hasn't yet, which is what people laugh at Crashy for, surely? I would actually prefer to wait and buy some time to think and see how life is as the pandemic winds down but other people are warning me that I could end up getting priced out by doing that. I'm not going to be able to save much much while renting...I've got a good deal now which allows me to save loads but I won't have it after July

Similarly i would like to buy before the summer as we jumped into a flat thinking wed be here 8 ish weeks.  Itll be nearer 4 months when all said and done.  I can almost guarantee that the market will crash the week after ive completed such is my luck,  but,  its still cheaper than rent and i can pay it off in 10 years.
im slightly biased in that i cannot bear renting though.  

RoisinDove

Angela_D_3 said:

RoisinDove said:

moneysavinghero said:

House prices are going up because everyone is having the same thoughts as you - they must buy a house now or they are going to miss out because prices keep rising so they join in the 'i will buy something i am not such i can afford' game. This is a self-fuelling and is how bubbles form. It can't last for ever and must at least cool down if not pop (crashy has his fingers crossed) at some point.

But it hasn't yet, which is what people laugh at Crashy for, surely? I would actually prefer to wait and buy some time to think and see how life is as the pandemic winds down but other people are warning me that I could end up getting priced out by doing that. I'm not going to be able to save much much while renting...I've got a good deal now which allows me to save loads but I won't have it after July

Similarly i would like to buy before the summer as we jumped into a flat thinking wed be here 8 ish weeks.  Itll be nearer 4 months when all said and done.  I can almost guarantee that the market will crash the week after ive completed such is my luck,  but,  its still cheaper than rent and i can pay it off in 10 years.
im slightly biased in that i cannot bear renting though.  

I can't bear renting either. It's not just the money, it's all of it. Getting treated like rubbish by landlord, things not getting fixed for weeks on end, inspections every 6 months, not being able to paint the walls or make it feel like home, not knowing how long you can stay there...it's just awful. I've had enough.

Crashy_Time

moneysavinghero said:

House prices are going up because everyone is having the same thoughts as you - they must buy a house now or they are going to miss out because prices keep rising so they join in the 'i will buy something i am not such i can afford' game. This is a self-fuelling and is how bubbles form. It can't last for ever and must at least cool down if not pop (crashy has his fingers crossed) at some point.

Indeed, the bubble is already well cooked though, I would say overdone actually, many people buying now will get their fingers burned if mortgage rates rise.

Crashy_Time

RoisinDove said:

Angela_D_3 said:

RoisinDove said:

moneysavinghero said:

House prices are going up because everyone is having the same thoughts as you - they must buy a house now or they are going to miss out because prices keep rising so they join in the 'i will buy something i am not such i can afford' game. This is a self-fuelling and is how bubbles form. It can't last for ever and must at least cool down if not pop (crashy has his fingers crossed) at some point.

But it hasn't yet, which is what people laugh at Crashy for, surely? I would actually prefer to wait and buy some time to think and see how life is as the pandemic winds down but other people are warning me that I could end up getting priced out by doing that. I'm not going to be able to save much much while renting...I've got a good deal now which allows me to save loads but I won't have it after July

Similarly i would like to buy before the summer as we jumped into a flat thinking wed be here 8 ish weeks.  Itll be nearer 4 months when all said and done.  I can almost guarantee that the market will crash the week after ive completed such is my luck,  but,  its still cheaper than rent and i can pay it off in 10 years.
im slightly biased in that i cannot bear renting though.  

I can't bear renting either. It's not just the money, it's all of it. Getting treated like rubbish by landlord, things not getting fixed for weeks on end, inspections every 6 months, not being able to paint the walls or make it feel like home, not knowing how long you can stay there...it's just awful. I've had enough.

Being trapped in a one bed flat that you can`t sell and don`t like any more with negative equity will be worse, rents in London are falling, get a new landlord IMO, or move out of London.

RoisinDove

Crashy_Time said:

RoisinDove said:

Angela_D_3 said:

RoisinDove said:

moneysavinghero said:

House prices are going up because everyone is having the same thoughts as you - they must buy a house now or they are going to miss out because prices keep rising so they join in the 'i will buy something i am not such i can afford' game. This is a self-fuelling and is how bubbles form. It can't last for ever and must at least cool down if not pop (crashy has his fingers crossed) at some point.

But it hasn't yet, which is what people laugh at Crashy for, surely? I would actually prefer to wait and buy some time to think and see how life is as the pandemic winds down but other people are warning me that I could end up getting priced out by doing that. I'm not going to be able to save much much while renting...I've got a good deal now which allows me to save loads but I won't have it after July

Similarly i would like to buy before the summer as we jumped into a flat thinking wed be here 8 ish weeks.  Itll be nearer 4 months when all said and done.  I can almost guarantee that the market will crash the week after ive completed such is my luck,  but,  its still cheaper than rent and i can pay it off in 10 years.
im slightly biased in that i cannot bear renting though.  

I can't bear renting either. It's not just the money, it's all of it. Getting treated like rubbish by landlord, things not getting fixed for weeks on end, inspections every 6 months, not being able to paint the walls or make it feel like home, not knowing how long you can stay there...it's just awful. I've had enough.

Being trapped in a one bed flat that you can`t sell and don`t like any more with negative equity will be worse, rents in London are falling, get a new landlord IMO, or move out of London.

I don't see how either of these things will help. I have literally never had a good landlord, in or out of London. 

Crashy_Time

RoisinDove said:

Crashy_Time said:

RoisinDove said:

Angela_D_3 said:

RoisinDove said:

moneysavinghero said:

House prices are going up because everyone is having the same thoughts as you - they must buy a house now or they are going to miss out because prices keep rising so they join in the 'i will buy something i am not such i can afford' game. This is a self-fuelling and is how bubbles form. It can't last for ever and must at least cool down if not pop (crashy has his fingers crossed) at some point.

But it hasn't yet, which is what people laugh at Crashy for, surely? I would actually prefer to wait and buy some time to think and see how life is as the pandemic winds down but other people are warning me that I could end up getting priced out by doing that. I'm not going to be able to save much much while renting...I've got a good deal now which allows me to save loads but I won't have it after July

Similarly i would like to buy before the summer as we jumped into a flat thinking wed be here 8 ish weeks.  Itll be nearer 4 months when all said and done.  I can almost guarantee that the market will crash the week after ive completed such is my luck,  but,  its still cheaper than rent and i can pay it off in 10 years.
im slightly biased in that i cannot bear renting though.  

I can't bear renting either. It's not just the money, it's all of it. Getting treated like rubbish by landlord, things not getting fixed for weeks on end, inspections every 6 months, not being able to paint the walls or make it feel like home, not knowing how long you can stay there...it's just awful. I've had enough.

Being trapped in a one bed flat that you can`t sell and don`t like any more with negative equity will be worse, rents in London are falling, get a new landlord IMO, or move out of London.

I don't see how either of these things will help. I have literally never had a good landlord, in or out of London. 

Interesting, I have only had good landlords, one guy even came round to my new flat (after I had said that his was too expensive and I needed to move somewhere cheaper) and gave me a tenner because I had left about that amount on the card payment electric meter. You need to build your cash pile to the point that landlords are chasing you for a taste, and stop putting up with nonsense from agents, a good thing to do is just tell the landlord that you love the property but the agent`s checks etc. are making you want to leave, that tends to get the agents in line because they are basically just a parasite feeding on the landlord`s cash flow.

Angela_D_3

Crashy_Time said:

RoisinDove said:

Crashy_Time said:

RoisinDove said:

Angela_D_3 said:

RoisinDove said:

moneysavinghero said:

House prices are going up because everyone is having the same thoughts as you - they must buy a house now or they are going to miss out because prices keep rising so they join in the 'i will buy something i am not such i can afford' game. This is a self-fuelling and is how bubbles form. It can't last for ever and must at least cool down if not pop (crashy has his fingers crossed) at some point.

But it hasn't yet, which is what people laugh at Crashy for, surely? I would actually prefer to wait and buy some time to think and see how life is as the pandemic winds down but other people are warning me that I could end up getting priced out by doing that. I'm not going to be able to save much much while renting...I've got a good deal now which allows me to save loads but I won't have it after July

Similarly i would like to buy before the summer as we jumped into a flat thinking wed be here 8 ish weeks.  Itll be nearer 4 months when all said and done.  I can almost guarantee that the market will crash the week after ive completed such is my luck,  but,  its still cheaper than rent and i can pay it off in 10 years.
im slightly biased in that i cannot bear renting though.  

I can't bear renting either. It's not just the money, it's all of it. Getting treated like rubbish by landlord, things not getting fixed for weeks on end, inspections every 6 months, not being able to paint the walls or make it feel like home, not knowing how long you can stay there...it's just awful. I've had enough.

Being trapped in a one bed flat that you can`t sell and don`t like any more with negative equity will be worse, rents in London are falling, get a new landlord IMO, or move out of London.

I don't see how either of these things will help. I have literally never had a good landlord, in or out of London. 

Interesting, I have only had good landlords, one guy even came round to my new flat (after I had said that his was too expensive and I needed to move somewhere cheaper) and gave me a tenner because I had left about that amount on the card payment electric meter. You need to build your cash pile to the point that landlords are chasing you for a taste, and stop putting up with nonsense from agents, a good thing to do is just tell the landlord that you love the property but the agent`s checks etc. are making you want to leave, that tends to get the agents in line because they are basically just a parasite feeding on the landlords cash flow.

Crashy theh dont care what you have in the bank. I have enough to buy my current rental abode outright sat in a current account.  Offered to pay 6 months up front for a £25 a month discount.  They said no.  

RoisinDove

Crashy_Time said:

RoisinDove said:

Crashy_Time said:

RoisinDove said:

Angela_D_3 said:

RoisinDove said:

moneysavinghero said:

House prices are going up because everyone is having the same thoughts as you - they must buy a house now or they are going to miss out because prices keep rising so they join in the 'i will buy something i am not such i can afford' game. This is a self-fuelling and is how bubbles form. It can't last for ever and must at least cool down if not pop (crashy has his fingers crossed) at some point.

But it hasn't yet, which is what people laugh at Crashy for, surely? I would actually prefer to wait and buy some time to think and see how life is as the pandemic winds down but other people are warning me that I could end up getting priced out by doing that. I'm not going to be able to save much much while renting...I've got a good deal now which allows me to save loads but I won't have it after July

Similarly i would like to buy before the summer as we jumped into a flat thinking wed be here 8 ish weeks.  Itll be nearer 4 months when all said and done.  I can almost guarantee that the market will crash the week after ive completed such is my luck,  but,  its still cheaper than rent and i can pay it off in 10 years.
im slightly biased in that i cannot bear renting though.  

I can't bear renting either. It's not just the money, it's all of it. Getting treated like rubbish by landlord, things not getting fixed for weeks on end, inspections every 6 months, not being able to paint the walls or make it feel like home, not knowing how long you can stay there...it's just awful. I've had enough.

Being trapped in a one bed flat that you can`t sell and don`t like any more with negative equity will be worse, rents in London are falling, get a new landlord IMO, or move out of London.

I don't see how either of these things will help. I have literally never had a good landlord, in or out of London. 

Interesting, I have only had good landlords, one guy even came round to my new flat (after I had said that his was too expensive and I needed to move somewhere cheaper) and gave me a tenner because I had left about that amount on the card payment electric meter. You need to build your cash pile to the point that landlords are chasing you for a taste, and stop putting up with nonsense from agents, a good thing to do is just tell the landlord that you love the property but the agent`s checks etc. are making you want to leave, that tends to get the agents in line because they are basically just a parasite feeding on the landlords cash flow.

Why would a landlord care how much I have in the bank? I could buy my own flat tomorrow if I wanted to...so what? I left my last place because it had a mice infestation, damp and mould, and it was rented for the same price within a week. And this was during the last year when there's supposedly a surplus of rental flats. If you live in a desirable area, there will always be more renters. 

Crashy_Time

RoisinDove said:

Crashy_Time said:

RoisinDove said:

Crashy_Time said:

RoisinDove said:

Angela_D_3 said:

RoisinDove said:

moneysavinghero said:

House prices are going up because everyone is having the same thoughts as you - they must buy a house now or they are going to miss out because prices keep rising so they join in the 'i will buy something i am not such i can afford' game. This is a self-fuelling and is how bubbles form. It can't last for ever and must at least cool down if not pop (crashy has his fingers crossed) at some point.

But it hasn't yet, which is what people laugh at Crashy for, surely? I would actually prefer to wait and buy some time to think and see how life is as the pandemic winds down but other people are warning me that I could end up getting priced out by doing that. I'm not going to be able to save much much while renting...I've got a good deal now which allows me to save loads but I won't have it after July

Similarly i would like to buy before the summer as we jumped into a flat thinking wed be here 8 ish weeks.  Itll be nearer 4 months when all said and done.  I can almost guarantee that the market will crash the week after ive completed such is my luck,  but,  its still cheaper than rent and i can pay it off in 10 years.
im slightly biased in that i cannot bear renting though.  

I can't bear renting either. It's not just the money, it's all of it. Getting treated like rubbish by landlord, things not getting fixed for weeks on end, inspections every 6 months, not being able to paint the walls or make it feel like home, not knowing how long you can stay there...it's just awful. I've had enough.

Being trapped in a one bed flat that you can`t sell and don`t like any more with negative equity will be worse, rents in London are falling, get a new landlord IMO, or move out of London.

I don't see how either of these things will help. I have literally never had a good landlord, in or out of London. 

Interesting, I have only had good landlords, one guy even came round to my new flat (after I had said that his was too expensive and I needed to move somewhere cheaper) and gave me a tenner because I had left about that amount on the card payment electric meter. You need to build your cash pile to the point that landlords are chasing you for a taste, and stop putting up with nonsense from agents, a good thing to do is just tell the landlord that you love the property but the agent`s checks etc. are making you want to leave, that tends to get the agents in line because they are basically just a parasite feeding on the landlords cash flow.

Why would a landlord care how much I have in the bank? I could buy my own flat tomorrow if I wanted to...so what? I left my last place because it had a mice infestation, damp and mould, and it was rented for the same price within a week. And this was during the last year when there's supposedly a surplus of rental flats. If you live in a desirable area, there will always be more renters. 

But you started a thread about not being able to afford a one bedroom flat?