The 'We're saving for a deposit' thread

tara747

Just checking... is everyone here going to borrow the maximum of what the bank(s) will lend them?

MrDT

tara747 wrote: »

Just checking... is everyone here going to borrow the maximum of what the bank(s) will lend them?

Not a chance! I expect we'll be borrowing somewhere between 1x and 2x joint earnings. (Cheaper house, not high earnings)

focus888

tara747 wrote: »

Just checking... is everyone here going to borrow the maximum of what the bank(s) will lend them?

I think i will probably have to because im on such a low income. I think more than saving the 10% deposit i need to work on getting a better paid job. Then 3x my salary will actually be something that can help me get a place. The mortage part is harder than the saving deposit part for me i think.:o

Dinah93

We don't want to pay out more than £820 a month on a mortgage as an absolute max. The banks will probably offer us more than this but we don't want to take it. We know the monthly payment we want, and we want a 5 year fix, so we will take whatever is the best 5 year deal at £800-£820 a month, and buy a house at that level.

tara747

Thanks for the replies. I thought that we were unusual in wanting to borrow far less than the maximum the banks would give us. We've been quoted £284,000 as a maximum mortgage which is FAR too high imho!!!!!!!!

We would want to borrow 2x joint as an absolute maximum and less if we can help it (gotta keep plugging away at that deposit).

lydiandrew

Not sure tbh, on looking at quotes they will lend us 4.5 times what we earn but not too comfortable with that, would much rather have a bigger deposit, however, when we have debt we are much better at paying it off then we are at saving! (which is awkward!) lol
Think it will be play it by ear and see where the market takes us and be patient for a change!

Jay83

Sorry this is abit random but is there an easy way to work out how much deposit you have saved up? I think i saw someone wrote it on here before. thanks

Dinah93

Think it was me. The percentage? Take the amount you have and divide it by the amount you are aiming for and xby 100.

Therefore if you had £4200 and wanted a £25,000 deposit it would be (4200/25000)*100=16.8%

MrDT

Jay83 wrote: »

Sorry this is abit random but is there an easy way to work out how much deposit you have saved up? I think i saw someone wrote it on here before. thanks

Check your savings account balances

J/k, do you mean work it out as percentage of purchase price? It's simply deposit saved divided by expected purchase price multiplied by 100. So, if you had 30k saved and were looking to buy a 95k house - 30000/95000*100 = ~31.6% deposit

edit: or as dinah said above, to work out how much of your target you've got saved it's the amount saved divided by target amount multiplied by 100.

Jay83

opps yes i meant percentage thanks both for your answers