What kind of a deposit would you need...

Relentless81

Relentless81

Relentless81

Soldato
Joined
18 May 2010
Posts
12,852
For a nice two bedroomed flat, one large bedroom and one small bedroom in the Manchester area?

Am I asking too much if I want to be..

Modern
Quiet (sound proofing noise, neighbours etc)
Secure parking preffered
Not a crap area

Would it come in between 90 and 100k? And if so what sort of deposit would that require and what kind of monthly payments would that leave?

Please only people who know what they are talking about
 
Yeah they seem to be around 100k for a decent one but its hard to tell without actually going and looking at them and its not until next summer that i'm going to be seriously looking so i'm more curious than anything else

Thanks for the link i've not seen that one, I am interested in knowing what an acceptable deposit for £100k is

Casdawer said:
Have you looked at flat prices around Manchester?

The BBC have a mortgage calculator which will give you a rough estimate on how much it will cost you a month for a mortgage - http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

Also, read this website - http://www.mortgagesorter.co.uk/costs_buying_home.html
Click to expand...
 
Do not move to one of the new developments in the hulme estate. It may be close to town but it is still a **** hole. I lived there for 6 months, had my car knicked and people tried to mug me a couple of times.
 
Relentless81 said:
Thanks for the link i've not seen that one, I am interested in knowing what an acceptable deposit for £100k is
Click to expand...

How would we know? The mortgage provider will look at the mortgage, look at your credit record and advise accordingly.
 
Morba said:
How would we know? The mortgage provider will look at the mortgage, look at your credit record and advise accordingly.
Click to expand...

I'm asking because i'm a total noob, I have no idea what so ever of where to start and what to do so I asked on here. There must be a standardsih figure for £100k, 5% 10% etc
 
This is from the website i linked to above.

The down payment or exchange deposit
When you exchange contracts, tying both sides into the sale, you’ll have to make the agreed down payment to the seller.
This is usually 10 per cent of the sale price.
If your lender has agreed to give you a 100 per cent mortgage, it will arrange to pay this.
Otherwise, you’ll need to have this cash ready to hand over on exchange.

The mortgage deposit
This is the difference between the price of your new home and the mortgage you’ve secured.
If your house costs £150,000 and you’ve got an 80 per cent mortgage (ie £120,000), the deposit will be £30,000.
In most cases, you will have handed over 10 per cent of your purchase price – in this case, £15,000 – on exchange of contracts.
This means you will have to find another £15,000, to make up the total £30,000, from other sources when the sale goes through.

Sources of deposit cash
Together, these deposits are usually the biggest up-front cost when buying a home.
If you already have a house and are selling it to buy a new one, hopefully once the mortgage is cleared you will have enough cash – known as equity – left over to cover your deposits.
Ideally, if you’re a first-time buyer, you will have saved enough to meet these.
Of course, if you take a 100 per cent mortgage, you won’t have to worry about either deposit.
But this isn’t necessarily a good thing, as mortgage lenders charge more, in the form of higher interest rates, for 100 per cent mortgages, and this can add considerably to your costs.
Click to expand...
 
Minimum deposit these days is usually 10%, or 25% if you want a decent rate on the mortgage repayments.

So if house is £100k, then a mortgage of 90k and a 10% deposit of 10k would be one example.
 
For a bit of reference, I'm looking at flats for about 320k. The sort of deposit required is 25%, so it does sting a bit!
 
div0 said:
Minimum deposit these days is usually 10%, or 25% if you want a decent rate on the mortgage repayments.

So if house is £100k, then a mortgage of 90k and a 10% deposit of 10k would be one example.
Click to expand...

Wow 25% thats never going to happen :(

platypus said:
You probably want to ask a mortgage advisor then.
Click to expand...

Maybe theres one on here, maybe someone has done something similar recently, i've already learned a few things in the ten mins this topic has been posted
 
Relentless81 said:
Maybe theres one on here, maybe someone has done something similar recently,
Click to expand...

A mortgage advisor on here could only offer general advice, which is found in google. Mortgages are based on finance, so they are specific to each application. No one here can tell you what you would get or the rate it would be at.
 
Relentless81 said:
Wow 25% thats never going to happen :(
Click to expand...

Most new buyers (people who don't already own a property) would be in the same boat, unless they're lucky enough to have parents who could help them out with the deposit.

In general the advice is to save up as much deposit as you can (to keep the remaining mortgage repayments as low as possible). But there has to be a point where you stop saving and decide to buy somewhere that you can afford.

It's not an easy decision and proper advice would definitely be a good idea.

I'm sure that places like MoneySavingExpert, or such similar sites would be worth a visit - as I know you can usually get quite a lot of good advice for free, whereas some places will try to charge you for the same information. Also note that some advisers will have their own interests in mind and so won't offer impartial advice. Again, you should be able to get more info on this sort of thing from sites such as MSE.
 
Just look at some mortgage comparison sites. You will see mortgages that require different levels of deposit, its risk / return for the lender.

25% is a current fad since some got burned badly so they are playing ultra safe now. Remember if they have to repossess a house/flat/whatever they are only going to ensure that they can get their money back they have no duty to ensure you get as good a price as possible. If they can get their money they are happy, if they don't however they will come after you to get the rest.

10% seems a pretty consistent minimum now for highstreet listed mortgages, but you really need to consult a good INDEPENDENT mortage lender to see what options you have. Whilst you may not be able to give a strong deposit you may have strong potential pay rises, say you are a young upcoming professional, you may have parents willing to act as guarantor etc. I was offered 3.25x my salary when I looked for my first house with 5% deposit. A specialist was willing to offer 6x with no deposit due to my being part qualified on a professional body since they predicted significant earnings growth for me. I didnt take it (as I didn't need to and it came with deferred interest due to low initial payments to make them affordable, but the option was there)

Every one is different, but highstreet banks will give you a pretty realistic expectation very quickly.
 
Ok so I gather from the good advice from the helpful posters that I need to go and see a mortgage specialist, my bank offer mortgages and i've been with them since I was 16 and I have an excellent credit rating so I think the first port of call is to get a rough idea from them

What I still need to figure out is the amount i'll need to borrow so i'll have to start looking at estate agents websites to get an idea but i'm hoping £100k will tick all the boxes because i'm secretly hoping for 10% of 90-100k

Whens that rich MILF going to come into my life :(

Thanks for all the helpful posts
 
Relentless81 said:
Ok so I gather from the good advice from the helpful posters that I need to go and see a mortgage specialist, my bank offer mortgages and i've been with them since I was 16 and I have an excellent credit rating so I think the first port of call is to get a rough idea from them

What I still need to figure out is the amount i'll need to borrow so i'll have to start looking at estate agents websites to get an idea but i'm hoping £100k will tick all the boxes because i'm secretly hoping for 10% of 90-100k

Whens that rich MILF going to come into my life :(

Thanks for all the helpful posts
Click to expand...

Good luck mate, I'm in the same board as you. Already had the go ahead from my bank 6 months ago. All I have to do is show them my 10% deposit which is 10k of the 100k for a house but I am looking for lower as other fees are involved.
I already have a few houses in mind and started to book viewings so when I go to see Mr Bank Man in the New Year I see where I stand. Hopefully it will be good as I need bigger space to play Kinect games when I buy it:)
 
You must log in or register to reply here.
Back
Top Bottom