First time buyer - what's a reasonable deposit
Discussion
I’d say £20k minimum but ideally £40k to get a decent apr on your mortgage.
I’m sure you could get a mortgage with less than £20k deposit but the rates won’t be brilliant.
As a general rule of thumb, the more deposit the better rate you can get.
Many lenders stipulate that you will need a higher deposit to buy a new build.
I’m sure you could get a mortgage with less than £20k deposit but the rates won’t be brilliant.
As a general rule of thumb, the more deposit the better rate you can get.
Many lenders stipulate that you will need a higher deposit to buy a new build.
Whatever you can afford, and whatever you can afford monthly. The more deposit the better interest rates accessible. There is no specific calculation as we are all different.
If house values go up, and your mortgage comes down, your LTV will go up meaning that better interest rates after two years will become naturally more accessible.
Make sure you save some money for rainy days when you need to pay the mortgage and bills from savings.
If house values go up, and your mortgage comes down, your LTV will go up meaning that better interest rates after two years will become naturally more accessible.
Make sure you save some money for rainy days when you need to pay the mortgage and bills from savings.
Remember whilst saving for an extra year, 2 or 3.. to get that extra 1% discount on the rate you will a) have lost those years as living in your own property and the freedoms that can bring b) lost any asset appreciation over those years c) probably be paying a higher cost for the property (see b) d) rates could easily go up anyway and e) have a mortgage 1,2,3 years later in life.
Obviously if you cant get the mortgage in the first place then you have no option but I would rather have my own place and pay a bit extra up front to get on the ladder.
Obviously if you cant get the mortgage in the first place then you have no option but I would rather have my own place and pay a bit extra up front to get on the ladder.
BobSaunders said:
Whatever you can afford, and whatever you can afford monthly. The more deposit the better interest rates accessible. There is no specific calculation as we are all different.
If house values go up, and your mortgage comes down, your LTV will go up meaning that better interest rates after two years will become naturally more accessible.
Make sure you save some money for rainy days when you need to pay the mortgage and bills from savings.
Already taken into account! My deposit is not all of my free cash.If house values go up, and your mortgage comes down, your LTV will go up meaning that better interest rates after two years will become naturally more accessible.
Make sure you save some money for rainy days when you need to pay the mortgage and bills from savings.
sparks_190e said:
We put £10,000 down on our £200,000 new build house last year, also had help to buy. Mortgage is over 37 years £500 a month, fixed for 5 years.
Nice little compliant, obedient, lifelong worker drone mortgage slave... just what the governbankment want.(Not having a go at you personally, it's just the reality of things)
Edited by mike74 on Sunday 4th August 06:41
Sorry for asking. Is that a typo. 37 years. They must take into account how old you’ll be when you hit the 37th year and the possibility that you might be retired by then. I guess you are about 20?
I didn’t know the mortgage market offered that length. Shows how out of touch I must be. I guess you can get those with lower monthly payments and then over pay to help reduce the length of the debt.
I didn’t know the mortgage market offered that length. Shows how out of touch I must be. I guess you can get those with lower monthly payments and then over pay to help reduce the length of the debt.
Be interesting to see what they will lend you. I recently bought what was essentially my first property at 44. I had 75k deposit. They would only lend a max of about 120k I seem to recall. This was first direct & I am a higher rate taxpayer. I didnt need quite that much for the small place I wanted & paid the mortgage off after 3 years anyway.
Edited by m_cozzy on Sunday 4th August 07:54
oldaudi said:
Sorry for asking. Is that a typo. 37 years. They must take into account how old you’ll be when you hit the 37th year and the possibility that you might be retired by then. I guess you are about 20?
I didn’t know the mortgage market offered that length. Shows how out of touch I must be. I guess you can get those with lower monthly payments and then over pay to help reduce the length of the debt.
Yes 37 years. I’ll be 68 which is my current retirement age. It was really the only way we could get a house, make it affordable, and get us on the ladder. Combined we only earn about £45k so we didn’t want to have £800/£900 coming out every month. Plan is to overpay when we can afford to, and remortgage to a shorter term if we can. Ultimately we are now in our own place rather than paying £300 more a month to live in someone else’s house.I didn’t know the mortgage market offered that length. Shows how out of touch I must be. I guess you can get those with lower monthly payments and then over pay to help reduce the length of the debt.
Edited by sparks_190e on Sunday 4th August 08:39
mike74 said:
sparks_190e said:
We put £10,000 down on our £200,000 new build house last year, also had help to buy. Mortgage is over 37 years £500 a month, fixed for 5 years.
Nice little compliant, obedient, lifelong worker drone mortgage slave... just what the governbankment want.(Not having a go at you personally, it's just the reality of things)
Edited by mike74 on Sunday 4th August 06:41
Good move, congratulations
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