Define a 'big' deposit

Cemetery

I am...or will be a FTB at some point (thinking of looking properly toward the end of next year). I have have been saving for what seems like ages now (just turned 28) and am nearing the 25k mark for my deposit (with some cash set aside for emergencies etc). Having decided some time ago I was unwilling to place myself in silly amounts of debt to get on the ladder in something the size of a shoebox for around the £100k mark I just thought I would save & hope the market toppled as it looks to be doing now. Salary is ~27k so looking at the 3.5x multiplier 'ideal' that is around the £95k mortgage size which still currently wont get me much so I am continuing to bide my time. Now given that kind of figue, would the deposit I mentioned earlier before I started to ramble be considered 'big' or does it not really compare with what potential buyers seem to have stashed away. Having looked through the saving a deposit thread there are some staggering sums some FTBs have stashed away.

I estimate by the end of next year if things go well & I continue to work my !!!! off, to have approximately a £40k deposit which I am hoping should get me a decent mortgage. Does this seem sensible or am I missing something? Having held on for so long ignoring those people telling me to get 5x salary mortgages it is starting to sink in that at some point in the near future I may be able to buy something that I would be happy living in

lostinrates

I think ours is reasonably big for a ftb. (we have over £65k now increasing by minimum 1k a month, and we have 83K euros that we can transfer to sterling in/after december)/.

The thing is the more I read and talk there will always be people with bigger dposits than ours and smaller ones. How big our mulitple mortgage will be will depend when we buy. Things we are loking at now would be a big multiple on DH's curent salary but ok for a while. I thik if we somehow manage to hold out another 18 months or so we'd be looking at 'grade up' property from that, same multiple, smaller relative deposit though.

PasturesNew

Yes, you will have a biggun.



A big deposit is really any deposit that will make your broker smile when you apply for a mortgage to borrow money to buy the house you want. The smile will be because he will know you will be approved without further questioning.

Lenders at the moment are asking for anywhere between 10% and 40% from people as a deposit. While 40% is unusual and only for certain circumstances or properties, 20% is a good minimum to head for to be doubly sure.

Cemetery

PasturesNew wrote: »

Yes, you will have a biggun.

Always nice to hear that

Is good to think in that case I will hopefully be in a good place in 18months or so then. Thumbs up for being sensible for once

geoffky

yes you have a decent one but also it will be your protection against the unforeseen circumstances. just keep saving and the more protection it will bring...