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Home Deposit
Former Member
Posts: 1,876,323 The Mix Honorary Guru
What sort of amount should I be looking to save for a first home deposit? I'm aiming to try and save 5k this year and buy at the beginning of next year, do you think this will be enough? The average price of a 1 bed flat where I live is about 140k
Thanks peeps
Thanks peeps
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Have you looked on home.co.uk? It has a timeline of things to think about when buying a house, including one off payments e.g. stamp duty and other things like life insurance etc. I found it pretty useful.
Yeah I will need to buy all the furniture etc too so I know I'm going to be looking a lot of money it's just driving me insane being at home and the thought of moving at the start of next year is keeping me sane at the mo! lol
Think I'll just have to start doing some serious saving then!
Yeah I'm hoping to start doing that. I'm finding it hard though because I'm paying £350 a month for a college course which is killing me! I'm hoping that maybe I can buy a place that is slightly cheaper and is in need of doing up and do things as I go along, we'll see though!
Thanks, it's really appreciated
:yes:
I've been saving up for the past year, and it's pretty amazing what you can save when you cut back a little and look back on unneccessary spends.
Definetly. I've been doing lots of little things but they all make a difference when put together. It's amazing how much making lunches for work at home saves :yes:
Legal fees would be about £600 + VAT, and then you'd have stamp duty at 1% if the property costs over £125,000 (or £150,000 if the area it is in is classed as a disadvantaged area, e.g. Newham in London).
Stamp duty applies to the entire purchase price of the property. So if you buy a property for £124,999, you pay no stamp duty. Pay £125,000 and you pay 1% stamp duty on the whole £125k = £1250.
As other people have been saying, the bigger the deposit = better. You want to be putting down at least a 10% deposit; taking out a 100% or 95% mortage will require you to pay insurance indemnity payments every month on top of your mortage, which is more expense in the long run.
Finally, be realistic! It's exciting buying a property, but make sure you can afford the property, and all of the costs associated with it (stamp duty, legal fees, furniture, bills, repairs etc.)
Good luck
Thanks for that
That's true yes, just be very careful when buying houses around the SDLT threshold because HMRC do monitor them very closely. Don't be tempted to get the purchase price below the threshold by paying a lot of fixtures and fittings, because that's tax fraud.
That's kind of true, but it depends on the lender. Most lenders when lending high LTV will charge what is known as a "higher lending charge"- we borrowed 95% LTV and had to pay £1,750 higher lending charge, but we were able to add it to the mortgage. You won't have to pay indemnity payments because they charge you for the extra risk they are taking in lending you the money.
You are always best going to an IFA for mortgage advice, but make sure that the IFA doesn't charge, because there are enough IFAs who don't charge. I found that the mortgage advisors that YourMove estate agents employ are very very good, and they found me a fantastic mortgage product.