House Deposit savings?

Original post by PinkAcid

whats the minimum I should be saving up to put down for a house deposit in the midlands (average 3 bedroom house ranges from £120k-£180k) if I want a decent semi detached at a minimum?

im thinking more like solicitor fees etc ontop of a deposit (5%,10%?) and I currently earn £26k a year saving £800 a month but thatll go down to £18k when I leave uni and get a job in the field im actually studying for starting at the bottom

also feel free to add how much you guys have saved up

Aim for at least a 10% deposit. You'll pay another 2% stamp duty.
Fees are variable but expect to pay at least £1k for the solicitor and searches etc.
Other costs to consider are the house survey (several hundred), any redecorating required and moving costs.

When I bought my first house I had about £30k saved up.

Reply 4

Some places also charge an arrangement for setting up the mortgage. May want to look into that. Plus you need to pay for buildings insurance and contents insurance .

Does anyone know how much banks will lend as a mortgage. How is it worked out?

Reply 5

Tiger Rag

22

Original post by Simonthegreat

Does anyone know how much banks will lend as a mortgage. How is it worked out?

If you look on bank websites, they should have a calculator?

Reply 6

As much as possible. There are mortgages for first time buyers that will waive most fees including survey, valuation and solicitors. I know the loyalty mortgages at Nationwide do this so I would try to become eligible for one of them if you're not already, or research other banks' loyalty mortgages. When some douche in an Estate Agent tried to sell me a Countrywide mortgage it seemed apparent that those are for people who don't really know what they're doing.

Reply 7

Reue

Original post by Simonthegreat

Does anyone know how much banks will lend as a mortgage. How is it worked out?

Usually 4-5x joint income.

Reply 8

Original post by Reue

Usually 4-5x joint income.

What about single incomes? 10% deposit plus single income mortgage.

Reply 9

Reue

Original post by Simonthegreat

What about single incomes? 10% deposit plus single income mortgage.

Less I expect as it's more risk. 4x?

Reply 10

Original post by Simonthegreat

What about single incomes? 10% deposit plus single income mortgage.

About the same assuming you don't have anything that looks dumb in your finances. I doubt it's much less risk on aggregate, since a lot of relationships don't last for an entire mortgage term.

Reply 11

4 times is not great but i guess it is ok ? net/gross income?

Reply 12

Original post by Simonthegreat

4 times is not great but i guess it is ok ? net/gross income?

Gross.

Reply 13

Original post by SmashConcept

Gross.

Cheers

Reply 14

Sephiroth

18

Original post by SmashConcept

About the same assuming you don't have anything that looks dumb in your finances. I doubt it's much less risk on aggregate, since a lot of relationships don't last for an entire mortgage term.

I'd argue this makes taking joint incomes into account more of a risk, because not only do both people have to keep their job if the couple breaks up then they can't pay the mortgage. For a single income the only risk is losing the job.

I'm saving for a mortgage myself and I plan to keep a few grand spare so that if the worst does happen and I lose my job I'll be able to cope for about 4 months while finding a new job.

Reply 15

Original post by Sephiroth

I'd argue this makes taking joint incomes into account more of a risk, because not only do both people have to keep their job if the couple breaks up then they can't pay the mortgage. For a single income the only risk is losing the job.

I'm saving for a mortgage myself and I plan to keep a few grand spare so that if the worst does happen and I lose my job I'll be able to cope for about 4 months while finding a new job.

I think it goes back and forth and kind of balances out. On one hand with a joint income you have a buffer if one person loses their job, but on the other hand what you and I are saying is true too. I think banks basically offer the same for either.

Reply 16

Findlay6

For a 120k house, we're looking to put down a 20% mortgage so we can pay it off quickly (long mortgages are mostly interest)

I'd strongly advise you to look into the Help to Buy ISA that government has just started. You can save a maximum of 12k and they will give you 25% free, and you can withdraw/add money whenever you want, AND both parties can apply for one meaning a maximum of 24K and 6K free.

Reply 17

Original post by Findlay6

For a 120k house, we're looking to put down a 20% mortgage so we can pay it off quickly (long mortgages are mostly interest)

I'd strongly advise you to look into the Help to Buy ISA that government has just started. You can save a maximum of 12k and they will give you 25% free, and you can withdraw/add money whenever you want, AND both parties can apply for one meaning a maximum of 24K and 6K free.

Is that 12K per year? isn't the isa allowance more like 15k? What happens if you don't manage to buy the house do you just get the interest only?

Reply 18

Findlay6

Original post by Simonthegreat

Is that 12K per year? isn't the isa allowance more like 15k? What happens if you don't manage to buy the house do you just get the interest only?

You can put in 12k in total over however long you want. The government will give you 25% of whatever you have in there up until you close the account/buy your mortgage.
There's no interest, it's literally a savings account towards a first time buyers house.

Google 'Help to Buy ISA Government' and read.

Reply 19

Illusionary