Deposit Required for £75,000 Flat

a 10% mortgage is pretty doable so you'd need 7.5k deposit. No stamp duty required and solicitors fees likely to be around 1.5k.

So yeah, figures look good.

Reply 2

OP

Original post by Reue

a 10% mortgage is pretty doable so you'd need 7.5k deposit. No stamp duty required and solicitors fees likely to be around 1.5k.

So yeah, figures look good.

Regarding the fact that 10% may be considered as a sound basis for a deposit, should I maybe look at properties as high as £80-85,000 if the solicitor's fees are likely to be approximately £1,500, and I have £11,000?

Reply 3

Original post by Leavemyarcelona

Regarding the fact that 10% may be considered as a sound basis for a deposit, should I maybe look at properties as high as £80-85,000 if the solicitor's fees are likely to be approximately £1,500, and I have £11,000?

Well there are other expenses to consider. Moving costs, furniture, repairs etc

Reply 4

RachaelBee

That would easily be doable, don't feel like you need to spend everything you have if you already found somewhere you like.

Reply 5

Original post by Reue

a 10% mortgage is pretty doable so you'd need 7.5k deposit. No stamp duty required and solicitors fees likely to be around 1.5k.

So yeah, figures look good.

Original post by Leavemyarcelona

I'm looking to buy a flat, and I have recently become aware of one that I really like, and that I think really fits the bill. The asking price is £75,000, and I currently have just over £11,000 saved up, although this would have to cover the deposit and the solicitor's fees, etc.

Has anyone on here bought their own home before? Are my savings likely to cover the deposit? I've arranged a meeting with a mortgage advisor at my bank as well, so hopefully this will shed some light on the situation.

Is it just me or is 75K dirty cheap for a flat? OP, where is this flat?

Reply 6

Original post by Juichiro

Is it just me or is 75K dirty cheap for a flat? OP, where is this flat?

Not particularly. Still plenty of cheap places in the UK

Reply 7

OP

Original post by Juichiro

Is it just me or is 75K dirty cheap for a flat? OP, where is this flat?

It's in Scotland, where prices are a lot cheaper than the south of England for example.

Reply 8

Original post by Reue

Not particularly. Still plenty of cheap places in the UK

What about England?

Reply 9

Original post by Leavemyarcelona

It's in Scotland, where prices are a lot cheaper than the south of England for example.

But it is also a lot colder. :frown:

Also, winter is coming.

Reply 10

Original post by Juichiro

What about England?

Yup. Found plenty on right move

Reply 11

Original post by Reue

Yup. Found plenty on right move

Any affordable flat in the main English cities?

Reply 12

parentlurker

15

Birmingham http://www.rightmove.co.uk/property-for-sale/property-32731578.html

http://www.rightmove.co.uk/property-for-sale/property-31166986.html

Manchester http://www.rightmove.co.uk/property-for-sale/property-32383830.html

Reply 13

parentlurker

15

Original post by Leavemyarcelona

I'm looking to buy a flat, and I have recently become aware of one that I really like, and that I think really fits the bill. The asking price is £75,000, and I currently have just over £11,000 saved up, although this would have to cover the deposit and the solicitor's fees, etc.

Has anyone on here bought their own home before? Are my savings likely to cover the deposit? I've arranged a meeting with a mortgage advisor at my bank as well, so hopefully this will shed some light on the situation.

Yes and yes. As stated above you'll need cash to move and buy some furniture. Although there is no sign of immediate increases in interest rates don't extend yourself too far as everyone shoud have some saving against redundancy or illness and interest rates may rise after the election.

Reply 14

OP

Original post by parentlurker

Yes and yes. As stated above you'll need cash to move and buy some furniture. Although there is no sign of immediate increases in interest rates don't extend yourself too far as everyone shoud have some saving against redundancy or illness and interest rates may rise after the election.

Thank you for the advice. Judging by your name, you could well be the parent of a student? If so, do you mind me asking what age you were when you bought your first home/property?

Do you have any general advice for a first time buyer like myself?

Reply 15

illegaltobepoor

19

Original post by Leavemyarcelona

I'm looking to buy a flat, and I have recently become aware of one that I really like, and that I think really fits the bill. The asking price is £75,000, and I currently have just over £11,000 saved up, although this would have to cover the deposit and the solicitor's fees, etc.

Has anyone on here bought their own home before? Are my savings likely to cover the deposit? I've arranged a meeting with a mortgage advisor at my bank as well, so hopefully this will shed some light on the situation.

Depends how much you can afford to pay a month and how much you could afford to pay if interest rates went as high as 15%.

11,000 deposit is risky in a 75,000 property. £338 a month @ 4% interest. If you had a Thatcher interest hike at 15% it would go as high as £820 a month.

So you really should be earning at least £30,000 per anum to make sure you can afford the payments if the economy takes a turn for the worst. And it probably will soon.

You should consider taking out a 5 year fixed rate mortgage. That will safe guard you from any sudden rate rises.

Don't just go with any mortgage provider. Shop around and get the best rate fixed for x number of years.

Oh and stay away from Help to Buy. Its tied in with inflation so if we go into hyper inflation your mortgage payments go sky high.

Reply 16

RachaelBee

Original post by Juichiro

Any affordable flat in the main English cities?

Yup, I'm selling mine worth £60k in Leeds City Centre.

Reply 17

RachaelBee

Original post by illegaltobepoor

Oh and stay away from Help to Buy. Its tied in with inflation so if we go into hyper inflation your mortgage payments go sky high.

My friend recently got caught out by this.

OP shared ownership is a good option and not the same as Help to Buy. I went down this route and bought a place when I was 18 which I could afford by myself.

Reply 18

illegaltobepoor

19

Original post by RachaelBee

My friend recently got caught out by this.

OP shared ownership is a good option and not the same as Help to Buy. I went down this route and bought a place when I was 18 which I could afford by myself.

Consider this. All student loans are based on RPI (inflation). So if we went into a period of 8 years of 15% inflation the £21,000 income threshold would only be worth about £7000 in todays money. Inflation at 15% or more happened in the 70s over 8 years. It could happen again.

So you have your £7000 of purchasing power + 9% tax on anymore income you earn over £21000.

So students should really consider that they are paying 9% tax for the rest of their lives since inflation will big up their debts.

Solution:

Take a part time degree and make sure you pay your debt off soon as possible.

(edited 9 years ago)

Reply 19

OP