is it still possible for 1st time buyers?

koe_182

just a bit of advice really, not really taking a plunge just yet but before the end of the year we had planned to buy.

me and my partner are currently renting, but would love to buy somewhere

the problem we have is that we currently have no money for a deposit.

our joint income is around £31k p/a.

we'd hopefully be looking for a property around £100k

of course we've heard all about the demise of the 100% mortgage, which we were thinking about, but we've heard about deals on new builds where they will pay towards deposits etc...

is this a common thing or are we goosed?

thanks

Dan_Collins_2

You will need 5% -10% deposit, no other way at the mo unless you go for shared ownership.

Also new build flats over 90% LTV is Halifax only and they are making noises about droping it (95%). But then again you would be mad to buy a new build flat at the mo. They will go down in price, then again keep your eyes and ears on the market as if you are looking in a year you may pick up a bargin!

Ian_Griffiths_Halifax

koe_182 wrote: »

just a bit of advice really, not really taking a plunge just yet but before the end of the year we had planned to buy.

me and my partner are currently renting, but would love to buy somewhere

the problem we have is that we currently have no money for a deposit.

our joint income is around £31k p/a.

we'd hopefully be looking for a property around £100k

of course we've heard all about the demise of the 100% mortgage, which we were thinking about, but we've heard about deals on new builds where they will pay towards deposits etc...

is this a common thing or are we goosed?

thanks

You can still get a mortgage without having to find a deposit your self, if the vendor (person selling) is willing to pay the deposit for you. This is known as the Vendor Deposit Scheme. for example, the asking price is £100,000 but are willing to accept £95,000. The £5,000 (5%) will act as your deposit so long as the value of £100,000 is agreed by the lenders valuer.

A number of lender still accept this, but to a maximum of 5%, though this is not always limited to New Builds.

Jimuth

From personal experience of having gone through the same thought process, why don't you consider saving like mad for the next year?

You're hugely unlikely to get a good deal on a mortgage at the moment anyway, and you're more likely to get a place on a better deal with better terms if you've got some deposit in the bank.

Get a goal, get disciplined, get Property Bee busy on Rightmove and start tracking properties you'd like... I bet you you'll see their prices come down over time, and then when you've got enough of a deposit in place to get a better mortgage... go for it!

Best of luck with it all!

wymondham

Jimuth wrote: »

From personal experience of having gone through the same thought process, why don't you consider saving like mad for the next year?

You're hugely unlikely to get a good deal on a mortgage at the moment anyway, and you're more likely to get a place on a better deal with better terms if you've got some deposit in the bank.

Get a goal, get disciplined, get Property Bee busy on Rightmove and start tracking properties you'd like... I bet you you'll see their prices come down over time, and then when you've got enough of a deposit in place to get a better mortgage... go for it!

Best of luck with it all!

excellent advice, I'd echo this...

Ian_Griffiths_Halifax

This is a copy of my post on the other thread titled '1st time buyers'

I would generally advise, in situations where my client are not able to get a mortgage for whatever reason and who choose to rent, that when they know what a mortgage WOULD HAVE COST had they been able to get it, that they put the difference between their Rent payments and the Mortgage payments into a savings account.

If there isn't and money to put into savings as their rent is higher, then perhaps they need to look at renting for less, going out less, eating less take-aways, take sandwiches to work, cutting back on unnecessary expenditure and any reduction in outgoings needs to go into the savings. If they could afford to pay the high outgoings before going through this process, then they surely can put the money into savings.

Ask family/friends for cash instead of birthday/Christmas presents. Even if it's £100 from parents, £20 from granny etc etc, it all adds up, and they will feel that they are doing you a favour and it also saves them looking round the shops for presents!

sarkin

As others have said saver a deposit and track property on property bee. You will need to download firefox, which is way better than IE. ~AS for new builds no please no dont do it. The reason the developer offers load ofincentives is he cant shift the property. Lots of lenders will now not lend on new build without a hefty deposit for obvious reasons.

good luck and get saving