Buying a house without a deposit?

PhillyDee · 22 Mar 2011 at 17:01

Basically, time has come to get a house with g/f. Of course, we need a deposit, but due to timescale, this is proving the stumbling block.
Is there any (serious) way of getting a deposit, apart from saving up. Of course, am now in saving mode, looking to scrap all unneeded expenditure and sell off stuff thats not used/needed.

No, I cannot sell my body, no bugger would buy it. Aparently kidneys are not allowed on eBay, and time is against us!

MrMoonX · 22 Mar 2011 at 17:04

20-30% deposit is going to get you the best rates, no deposit wont get you a mortgage since sub-prime dried up, just save and wait for a year or so, it will be worth it in the long run, why the rush its not a good time to buy

Mr^B · 22 Mar 2011 at 17:21

Rent.

/thread

BennyC · 22 Mar 2011 at 17:27

MrMoonX said:
why the rush its not a good time to buy

More elaboration as to why you think this please?

@ OP, 'gifted deposits' aren't looked upon favorably by lenders (or so I've read). As big a deposit as you can get would be best. If you can pop £1k or so into premium bonds then you have the chance of winning a small amount to help. You wouldn't loose out on much interest with current rates. 2.4% net was the highest I've found for an online access savings account. So on a small amount of money it's not a great deal anyway. Providing you're in a position to loose what small amount of interest you would make.

95% mortgages etc will have pritty poor rates in comparison. It's well worth the wait of getting your LTV down so that you get a better rate rather than pay through the nose because you bought in a rush.

Nationwide did some good deals for FTB's if you bank with them, though it'll depend on how much you need to borrow in comparison to the purchase price.

[TW]Fox · 22 Mar 2011 at 17:28

Rent.

Get out of this mindset everyone is in that you HAVE to buy. Buying is nice - but its very much a luxury. If you dont have a deposit you cant really afford to buy a house. That might sound harsh but that pretty much is how it is.

Adam · 22 Mar 2011 at 17:28

You stand no chance without a deposit, I wouldn't bother even wasting your time looking. Even with a 10% deposit the rates will be high, they get slightly better at 20% but really start to improve at 25%.

You'll need to save otherwise renting is your only choice.

Morba · 22 Mar 2011 at 17:29

[TW]Fox;18726702 said:
Rent.

Get out of this mindset everyone is in that you HAVE to buy. Buying is nice - but its very much a luxury. If you dont have a deposit you cant really afford to buy a house. That might sound harsh but that pretty much is how it is.

This.

Rotty · 22 Mar 2011 at 17:31

[TW]Fox;18726702 said:
Rent.

Get out of this mindset everyone is in that you HAVE to buy. Buying is nice - but its very much a luxury. If you dont have a deposit you cant really afford to buy a house. That might sound harsh but that pretty much is how it is.

Better to save for 2 years than rent IMO, once you get into the renting cycle it can be hard to save a deposit, you don't want to still be renting as you get older when you can be living in a paid for home

malachi · 22 Mar 2011 at 17:33

BennyC said:
More elaboration as to why you think this please?

@ OP, 'gifted deposits' aren't looked upon favorably by lenders (or so I've read). As big a deposit as you can get would be best. If you can pop £1k or so into premium bonds then you have the chance of winning a small amount to help. You wouldn't loose out on much interest with current rates. 2.4% net was the highest I've found for an online access savings account. So on a small amount of money it's not a great deal anyway. Providing you're in a position to loose what small amount of interest you would make.

It is a good time to buy but not to sell and yes you need a good deposits. No deposit, no mortgage, simple. So best if you do rent like everyone else said.

EdwardTeach · 22 Mar 2011 at 17:35

Rent somewhere cheap to save up.

DM · 22 Mar 2011 at 17:39

Better yet if your still at home with parents stay there, all the better for saving.

Then once a month you take the beloved to a Travel Lodge for a dirty weekend in compensation to yourself

Danm54 · 22 Mar 2011 at 17:46

Rotty said:
Better to save for 2 years than rent IMO, once you get into the renting cycle it can be hard to save a deposit, you don't want to still be renting as you get older when you can be living in a paid for home

I agree with this.

Me and my girlfriend are wanting to buy, we're both 25 and while she lives at home I live in a shared house, im lucky that ive got a good deal and pay quite cheap rent, I live with a mate and his girlfriend.

Once you get into renting a house then the rent and bills you pay will make it extremely difficult to save the required 20-25% and you'll be spending much more of your money to pay someone else's morgage!!

Stick with living cheap and save as much as you can, 20-30K isn't going to be easy to save but in the long run you'll have a cheaper morgage which will give you more money for luxuries and put you in a better position if interest rates rise.

We're hoping that by the time we've saved enough then morgages will be easier to get and it'll be a much better market to buy into.

Good luck

dalin80 · 22 Mar 2011 at 17:48

Renting is dead money, save up instead.

Glaucus · 22 Mar 2011 at 17:51

There are many home buy schemes that are worth looking at, it might not be the cheapest way, but money isn't everything. It all depends what you want. Some people prefer to have a house and settle down for the longterm than worry about a 10k over a decade. What puts me of from this isn't the cost of the home buy scheme, but the price of new homes compared to the 2nd hand market.

Same as you don't need 20-30%. 10% is fine if you can afford it.
Also Gifted deposits aren't a problem, certainly wasn't an issue with my sister.

Turambar · 22 Mar 2011 at 17:53

EdwardTeach said:
Rent somewhere cheap to save up.

Have you seen monthly rental costs these days? There is nowhere cheap.

Morba · 22 Mar 2011 at 17:53

dalin80 said:
Renting is dead money, save up instead.

What rubbish. I guess shared housing is also dead money.

iamtheoneneo · 22 Mar 2011 at 17:54

I think we all know renting is dead money but last time I checked there were 3 options when it comes to housing: rent, live with parents or buy a house.

Now unless you have the money already number 3 isn't an option which leaves 1 or 2, most do 1 bc they have too not because they wan't too!
And if you do number 2 and your parents aren't charging your rent then yes that's great but not exactly teaching you much about money and actually living in thee big bad world and I'd be extremely sceptical if such an individual ever managed to get hold of a house.

Say you save £ 500 a month it would take you a couple of years to get enough capital, that's a lot of time to live at home!

DM · 22 Mar 2011 at 17:56

AcidHell2 said:
There are many home buy schemes that are worth looking at, it might not be the cheapest way, but money isn't everything. It all depends what you want. Some people prefer to have a house and settle down for the longterm than worry about a 10k over a decade. What puts me of from this isn't the cost of the home buy scheme, but the price of new homes compared to the 2nd hand market.

Same as you don't need 20-30%. 10% is fine if you can afford it.
Also Gifted deposits aren't a problem, certainly wasn't an issue with my sister.

There are loads of ways round it, but you just cant beat a good old fashioned deposit to take the sting out of coughing up monthly.

jamief · 22 Mar 2011 at 17:56

dalin80 said:
Renting is dead money, save up instead.

And where do you live whilst you save up?

Dmack · 22 Mar 2011 at 17:57

If i save 10,000 is that anything substantial ? or should i just keep going.