House deposit

[AndStilliRise]

Hi does anyone know how much of a deposit I would need for house in London. Circa ~£700k please?

Background:
Been living in the same house for 10 years, which has been extended and improved over the years however to move it just seems not be affordable. Trying to get a similar house in a better house is just as expensive as finding a bigger house in undesirable area. We seem to be caught in the middle a little. Would appreciate any advice if anyone could help?

Current:
Clean credit history, working as a contractor in London. No car finance or any other large loans. Wife, children and E39 M5 fuel are the biggest outgoings.

Thanks in advance.

[FrankAbagnale]

As a very very loose rule of thumb, if you take either

10% (absolute minimum) of the purchase price

Or

Times your salary by 5 and minus that from the purchase price - whatever is left over needs to be deposit.

Whichever of the two above is the greater amount gives a rough idea of your minimum deposit.

AFAIK new mortgage criteria have come in which make it far more tricky than that basic example above and in all likelyhood the figure will be higher, especially being a contractor.

N.B - I did say that is a very loose rule to go by. Someone who works with mortgages might be able to help with some more accurate examples.

Edited by FrankAbagnale on Monday 9th November 12:10

[sealtt]

Probably 15%. However for the right income and credit rating they can do as low as 5% even on £700k.

[okgo]

Depends what you want to pay each month also. I worked out that I would need around 140k all in with stamp to get a payment under 2500 per month for a house at 750k or so.

It all can be easily worked out with the calculators.