The 'We're saving for a deposit' thread

*Beki*

Well the recommended amount is 25-40% which as a first time buyer can be hard to save, but it's a toss up between saving for that bit longer in order to get a mortgage with a lower rate in the long run. Weigh it up against how much rent you're paying currently!

For a property at £150k, a 25% deposit would be £37,500 and then you've got to add fees etc as well. Not trying to scare you- I'm saving too, and just did the calculations recently to see what a decent target would be and it can be a bit daunting!:eek: I know you can get 90% mortgages but in my head that just doesn't seem like a sensible thing to do

Good luck with it

ManPants

jetblack61 wrote: »

Hi all,
I'm totally new to the idea of a mortgage, and at the moment just know we need to save for a deposit..

We've got around £10,000 at the moment, and I'm wondering how much more we'll need (and therefore how much longer it will take!)
We're probably in an area where a house that would be suitable is around £150-£180k.

Any thoughts?!

Hello,

We bought our first house 6 years ago. Deposit of £23,000 on a £124,000 house meant we had a mortgage of £101,000 which translated as a monthly payment of about £700 for the first 2 years fixed rate.

I would say that was about a 20% deposit on the total amount. Meant that mortgage wasn't so high we became a slave to it. Don't know how long it took you to save your £10,000 but I'd at least triple that.

Good Luck.

SPS.

jetblack61

Thanks for the posts - we're paying £600pcm in rent at the moment, so in my head it makes sense to get a mortgage ASAP because the rent we're spending (which is going nowhere) may make up for the increase in mortgage cost with a lower deposit?

MandM90

jetblack61 wrote: »

Thanks for the posts - we're paying £600pcm in rent at the moment, so in my head it makes sense to get a mortgage ASAP because the rent we're spending (which is going nowhere) may make up for the increase in mortgage cost with a lower deposit?

How long did it take you to save 10k?

Try and gather some rough repayment figures for different deposit values and see what seems like a reasonable compromise for you financially.

skinnyman9000

Personally I don't think there is anything wrong with a 10% deposit, that's what we're aiming for. Sure we could wait until we get 20% or 30%, but how long do you play that game for? Having said that, we've already hit the 10% mark and don't plan on looking at any houses for another 2 months, so we might even hit 15-20% by the time we find somewhere anyway.

Our mortgage advisor has found rates as low as 4% fixed over 2yrs for 10%, which is good enough for me!

skinnyman9000

Also, just to join in.

Another £1500 will be going in at the end of this month, and then in Feb it's company bonus time so we'll hopefully be putting a further £2000 in.

Unfortunately both car insurance policies are due in April, so I imagine that'll knock us down £1500-£2000ish

samtoby

I have found the rates lower a lot at 15% which means payments come down. Dropping after that is not as much x

Odette

samtoby wrote: »

I have found the rates lower a lot at 15% which means payments come down. Dropping after that is not as much x

Yeah I agree, we just wanna pip that 15%. Its really worth getting to that 15% because the reduction is significant. 10% is still quite high risk for lenders I think.

nightsky224

I have just found this thread and wanted to say good luck to everyone. We have been saving to buy a house for about 3 years and have finally got to the point where we have a 15% deposit, in fact with the house we have just found and hopefully going to put an offer in after we have seen the house for the 3rd time this weekend (and made sure in theory the attic is big enough to convert) we should have 20% deposit as it’s a bit below our budget. It took a long time and in theory we should prob save for longer to get a bigger house but we got engaged a few months ago and I think we are both ready to get on without lives. With a smaller house we will have more money to save for the wedding and reduce the risk when interest rates increase etc. We can over pay on the mortgage too.

Any way its just to say you get there eventually, for some it may take longer than others but hopefully it will be worth it in the end.

[Deleted User]

Odette wrote: »

Yeah I agree, we just wanna pip that 15%. Its really worth getting to that 15% because the reduction is significant. 10% is still quite high risk for lenders I think.

Yes, 15% is the minimum that I would aim for as well.

And I think that anyone hoping to get a mortgage with a 10% deposit will not only need to be prepared to pay a little more in interest, but I think that they will also need have a squeeky clean credit report and fit the underwriter's criteria exactly.

D9