House deposits

[glitterfly]

Hello girlies,

Random question i know.. but does anyone know how much of a deposit people are needing at the moment to secure a first time buy?

I was trying to research it but i keep getting old information that says its only 5%. (ha- i wish!)

Thanks in advance for your help!

xxx

 

[Jem88]

I'm not sure if it's the same everywhere, but when we private rented our 1st house and this one we had to pay a deposit and one months rent in advance. The deposit was the same amount as one months rent.

Edit: Ah i didn't read your post properly, thought you we're wanting to rent not buy, sorry lol.

 

[LoveCakes]

When we bought our house 2 years ago it was 10% minimum, and that was only 3 lenders!

Things have changed a bit though. Why not go in for an appointment with an independent mortgage advisor, it made things a lot clearer for us.

 

[CarlyP]

My OH's parents buy and rent out houses to students and MIL told me the other day it was about 25%?!?

 

[beccad]

If you're buying at least 10%, but more would be better. The more deposit you have the better the mortgage rate you'll get.

Having a deposit doesn't guarantee you'll get a mortgage, though. When we bought out second place earlier this year DH and I both had blemish-free credit records, secure incomes and a 28% deposit, but we were still turned down by a couple of lenders.

The best advice I can give you is to speak to an Independent Financial Advisor. Make sure they are 'Whole of market', which means they look at a broad range of products rather than being tied to just a few lenders. They will be able to best advise you on your current circumstances, savings, income etc. as to whether or not you'll be able to get a mortgage at the moment.

 

[Scamp]

We bought last year and needed 20k deposit for a 115k house. I'm not sure what that works out as a percentage, to tired

The best thing we did was went and asked for advice is 3 different banks (co-op, Barclays and nationwide) and also went to an independent mortgage advisor (countrywide) the advice with them is completely free x

 

[Baby France]

I think that it is at least 10% now!

I know that we visited a financial advisor the week we were looking and managed to secure one of the last 5% mortgages on the market (we signed literally the Friday and it wasn't available come Monday!).

 

[babydevil1989]

how depressing were never gonna be able to buy!!

 

[dizz]

Some places locally last year did 95% mortgages for first time buyers but the income multiples they were using were very very tight and the interest rate wasn't pretty, was somewhat more prettier going up to 90% by far.

 

[fairy1984]

i think its approx 4 times your income and at least a 10% deposit at the mo (was just checking for a re-mortgage on our place this week and thats what we needed)

 

[vaniilla]

10% minimum is the norm but obviously the more the better, there are a few that will do it for 5% but they're not very good and pretty expensive, you can borrow between 4 & 5 times your combined annual salary depending on the lender - my dh works in finance and mortgages are one of the things he advises on

 

[MrsVenn]

A very good friend of mine has just been told by one lender that they need 30%. When we bought in 2007, we had a 28% deposit and at the time they were asking for a minimum of 10%.

 

[FlowerFairy]

we bought our house on 1st oct 2010 and needed a 5% deposit. which only came to £3250!! That is with Yorkshire bank, however the rate is 6.99% for 3 years so pretty high but it was the only way we could get onto the property ladder x

 

[Rhi_Rhi1]

i heard it was 20% to get the best rates, etc.... and 3.5 times single salary and 3 times combined salary it is fairly stupid, for example we earn more then most 40 somethings we know, including our neighbours yet they all own their houses and we have no chance ! lame x

 

[gills8752]

I can recommend an IFA as well. I've always used them for my mortgages and they will be able to give you the best advice - plus its free. I use them everytime my fixed rate is due for renewal too.

I bought way before the recession so I don't know about deposits now but if you want a quick look them go website hunting on the most common lenders - try Halifax (good for young folk/first timers) lloyds, santander etc and they'll have mortgage calculators and list of their current deals and what % deposit you'll need. Every lender differs. There are a FEW lenders who will go to 95% again now but you'll need a very pretty credit rating and safe lending terms to get that much.

Good luck in your hunt and I hope you manage to get on the ladder asap!

 

[glitterfly]

hello again,

sorry i havent replied sooner, this is the first chance ive had.

Well you have all certainly given me some food for thought, thank you. We assumed around £20K for a 10% deposit but i think you're all right, the best option is to speak to an IFA..

I think if we can save up the rest of our deposit now and buy sooner rather then later then house prices are at a good level to buy and in the next few years property prices can only increase.

Our rent is up for renewal in Feb and we're seriously debating moving in to his parents and putting what we normally put in for rent into our savings to make it that much quicker. I reckon we'd definitely have enough this time next year if we did that. sorry im rambling now... i shall hush.


thank you very much for giving me and idea... i'll let you know what the IFA says.

xx

 

[lesleyann]

Nationwide do a 5% morgage however your ment to open a savings account with them for a min of 6months and put atleast £50 a month in it to keep it open, the max you can have the account for is 1 or 2 years, but if you use this savings account you can get the 5% and If I remember correct £1,000 back as we looked into it

 

[beccad]

hello again,

sorry i havent replied sooner, this is the first chance ive had.

Well you have all certainly given me some food for thought, thank you. We assumed around £20K for a 10% deposit but i think you're all right, the best option is to speak to an IFA..

I think if we can save up the rest of our deposit now and buy sooner rather then later then house prices are at a good level to buy and in the next few years property prices can only increase.

Our rent is up for renewal in Feb and we're seriously debating moving in to his parents and putting what we normally put in for rent into our savings to make it that much quicker. I reckon we'd definitely have enough this time next year if we did that. sorry im rambling now... i shall hush.


thank you very much for giving me and idea... i'll let you know what the IFA says.

xx

Moving in with the parents is a really good idea, and if you live like hermits for a few months you can save loads. We did it for six months between selling our flat and buying our house, and it's dull never going out or spending money, but it's honestly worth it and every little bit extra you save is a little bit more house that YOU own rather than the bank so to speak.