The 'We're saving for a deposit' thread

tara747

rictus123 wrote: »

I think you have a great idea Tara but would you not be better going for it with a kind of small mortgage then what u pay in rent will cover mortgage and what you currently save can be used to over pay....that way you will get your place sooner. Not seen sue going about...last I heard she was buying somewhere and had 110k I think it was?

We are looking, but there isn't really anywhere suitable in our area and I am very fussy about location!! I still think that prices have some way to fall here (Belfast) so we are not taking a risk by sitting it out.

valleylass

Hi
I've also posted this over on the mortgages board, but was also wondering if anyone here could also help?
Am a FTB buyer, have been been looking around at mortgages and it seems that based upon my current salary I can borrow upto £125,000.
My question is this, if for eg I found a house for £145,000 and I can borrow £125k, for my deposit would I need to have 10 or 15% of £125k so up to £18,750, and then make up any shortfall myself?

So if my maths are right (i doubt they are!) I would need £18,750 and then potentially another £20k on top of that?

Would that be allowed by the mortgage companies?

Jackies

DH just transferred £735 into his account So now our percentage is 85.49%! Funny how much joy you can get from seeing numbers change!!

A few quick questions if I may though?

We want to save a 25% deposit, which is £62500....this means that actually we only have about another £500 ish before we've reached that total (the 85% total above is percentage of our total which is our deposit + 10k).....we had budgeted an extra 10k for fees, moving etc but seeing as we're looking to move by the end of this year I'm thinking we may not have time to get that extra 10k so was starting to think about the bare minimum extra we would need.....from my research I'd need to have money for

- solicitors fees
- surveys
- moving
- decoration

Is there anything else I'm missing? I'm not really sure how much we'd need to budget for the first two (moving/decoration would be cheap as have lots of friends who have agreed to help and we would just forgo the decoration initially if we needed to)......................we're FTBs who have nothing to sell and would be under the limit from stamp duty so no need to think about that.

Is there anything other than fees/surveys I'd need to pay out for? How much roughly is this likely to be? Oh, and do estate agents fees get paid for by the seller or buyer (sorry! stupid questions)

purplevamp

valleylass wrote: »

Hi
I've also posted this over on the mortgages board, but was also wondering if anyone here could also help?
Am a FTB buyer, have been been looking around at mortgages and it seems that based upon my current salary I can borrow upto £125,000.
My question is this, if for eg I found a house for £145,000 and I can borrow £125k, for my deposit would I need to have 10 or 15% of £125k so up to £18,750, and then make up any shortfall myself?

So if my maths are right (i doubt they are!) I would need £18,750 and then potentially another £20k on top of that?

Would that be allowed by the mortgage companies?

Hi valleylass ~ I'm not too hot on maths either but I think your deposit would be on the house and not on the mortgage you could get

eg:
15% of £145,000 = £21,750

Mortgage req = £123,250

So by my calculations you would be fine.



I'm not sure if this is correct, hopefully someone with more logic will be along with the correct answer

rodenal

valleylass wrote: »

Hi
I've also posted this over on the mortgages board, but was also wondering if anyone here could also help?
Am a FTB buyer, have been been looking around at mortgages and it seems that based upon my current salary I can borrow upto £125,000.
My question is this, if for eg I found a house for £145,000 and I can borrow £125k, for my deposit would I need to have 10 or 15% of £125k so up to £18,750, and then make up any shortfall myself?

So if my maths are right (i doubt they are!) I would need £18,750 and then potentially another £20k on top of that?

Would that be allowed by the mortgage companies?

I think you might be confusing yourself lol

if you can borrow up to 125k, that's what you can borrow - £125k on say a 90% LTV is roughly a £138.8k house i.e you put in 13.8k. If you want a more expensive house you'll just have to save more of a deposit but the max borrowing wont shift.

valleylass

Thanks for the replies.
Think your right and I was confusing myself- nothing unusual there!
I think I was thinking that as I could borrow up to £125k that I would need to have 10 or 15% of the 125k and if the house was more I would need to find the extra... Think I'll shut up now before I confuse myself and everyone else even more... :-)
Am just looking to save as much as possible so tonight we're on the hunt for things to sell at our first attempt at a car boot sale that's if we can bear to part with anything... Everything I think we can sell I start talking myself out of by promising myself I will lose weight and fit back into it!!!

Alejandro

tara747 wrote: »

Alejandro - bl00dy hell!!!! Well done! Any tips?

Not really - we are quite lucky in that both me and OH have well paying jobs (well, relative to most I guess), and we've had relatively cheap rent for the past three years (by London standards) which has allowed us to save that much. We're tentatively starting to househunt and it still doesn't seem like very much money! I guess central London house prices are just a bit crazy...

Looks like you're doing pretty well yourself!

tara747

Why thank you

London prices are mental, I don't envy you! I hope you find the perfect place. What areas are you looking at?

Alejandro

tara747 wrote: »

Why thank you

London prices are mental, I don't envy you! I hope you find the perfect place. What areas are you looking at?

North London at the moment - Stoke Newington, Highbury etc, but struggling to find anywhere at the moment. May need to branch out to cheaper areas!

tara747

Alejandro wrote: »

North London at the moment - Stoke Newington, Highbury etc, but struggling to find anywhere at the moment. May need to branch out to cheaper areas!

I'm sure you will do your research before buying!

We won't compromise at all on location; I have friends who bought in cheaper/dodgy areas during the boom and now bitterly regret it. I would rather live in a small house in the nicest area than a big house in an area where I don't feel comfortable.