With a 40k deposit, what's my options for a property?

[Z064life]

Hi all,


I have just over £40k saved. Within London, what property could this get me (using £40k as a deposit). My income is £50k and my credit rating is good.

I'm interested in either a house to live in or invest (or even a flat).



Thanks

[MajorProblem]

On salary you'd get about 200k mortgage, plus your deposit should get you a house in the 260k range if you haggle.

With buy to let you will be able to go to about 190k in total and the fees will be higher.

[jayxx83]

Depending on lender you could get up to 5.5 times your income. Then add on your deposit. You will need at least 15% deposit to get these multiples however.

If you buy for £300k you will need £45k deposit, £9k for stamp duty, then a few k more for survey, solicitors etc. Get in touch if you need any more help.

[The Stiglet]

jayxx83 said:

If you buy for £300k you will need £45k deposit, £9k for stamp duty

Can you roll the stamp duty into the mortgage?

[Volition]

Is that your overall budget including stamp duty, cost of survey and solicitor fees? If so keep saving as you're going to need more cash than what you've currently saved. Any property over 250k will cost you 3% in stamp duty alone, which will eat into a large chunk of your 40k.

In London you might get a 2 bed house or a flat for around 250k, but it depends on where in London you're looking.

[Sarnie]

The Stiglet said:

Can you roll the stamp duty into the mortgage?

No.

[worsy]

Nothing constructive to say, however truly sad to think that 40k in savings and a 50k salary buys a flat

[bigunit00]

worsy said:

Nothing constructive to say, however truly sad to think that 40k in savings and a 50k salary buys a flat

in london you may be shocked at the state of the flat you get for this amount as well......depending on where you want to live

[BoRED S2upid]

worsy said:

Nothing constructive to say, however truly sad to think that 40k in savings and a 50k salary buys a flat

Only in London could that position only get you into a 1 or 2 bed flat. Crazy.

[AyBee]

worsy said:

Nothing constructive to say, however truly sad to think that 40k in savings and a 50k salary buys a flat

I'm in pretty much the same position as OP. Would get a much nicer place outside London but then the job wouldn't pay as much, so the mortgage allowed wouldn't be as big etc etc.