Mortage diposit, how much?

[SpiritMr89]

Wife and I (with 2 kids), have stopped renting and moved in with my mother to save for a house.

Av always been a bit over the top, so want 40k in 2yrs £1666pcm.

Our take homes are:
Me -2k
Wife - 1200,

What would you say would be a 'reasonable' deposit, for a house.
I know the market is naff right now and all that. But hopefully it has settled down in a year or so.

Also wife wants another kid. And with her's being 11 and 13, we'd be looking at a 4bed house. So round here (North Lincs), about 200k.

Any help please.
____________________
Hello

[arry]

Get yourself a decent mortgage / IFA and get some proper advice.

A quick search on moneysupermarket or the like will give you an idea. From what I've seen recently minimum deposit needs to be ~10% for the major lenders to get involved but there's building societies out there doing it for less.

You'll need to balance off what you can save whilst staying with family versus how far the housing market is going to be moving away from you as you do so. In other words, it's no good saying you've saved £5k being at the parents if the cost of a house has gone up £15k in the time it's taken you.

[Polarbear]

Everything arry has said. Get advice from a decent source and look at house price rises.

My 2 penny worth? Get on the ladder as quick as possible. It gives you a decent time to pay off the mortgage and the house will be going up in value for you, not someone else.

Also, how long will your mother put up with 2 extra adults and 2 kids in her home? It's not like a weekend visit you know. I love my kids and grandkids dearly but the thought of sharing my home with them would send me onto the boat permanently.
____________________
Triumph Trophy Launch Edition

[P.]

We had to find £22,000, so around 10%. I refuse to use my savings to buy a house, so we saved up separately as a house fund, took about a year of not spending and we moved in with her parents.

I would suggest you get about the same, you'll have solicitor fees too so potentially 1000 or so on top.

Getting professional advice though is key. Echo polarbear, I could have buried her parents after 6 months.

[Nobby the Bastard]

Whats the minimum amount for stamp duty these days?
____________________
trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Triumph Sprint ST 1050

[P.]

[Ayrton]

Make sure to check your credit score and put some work into building it up. When I bought my house with my brother we had to fork over 12% instead of 8% deposit because he had an unpaid phone bill from years ago and being 22 we didn't really have any credit history.

[Rob Fzs]

20 grand + usually gives you a decentish rate, entirely depends on what deal your broker can get for you though, all things can be adjusted within reason, sooner the better and then over pay if you have to though as house prices are silly, our place has gone up 30k in 2 years
____________________
'00 Aprilia RS50 > '92 Honda CG > '99 Yamaha Fazer > '91 Yamaha RXS > '79 Suzuki X5 > 01' Honda Cg > 07' Honda Cg > 82' Kawasaki Z200 > suzuki gsxr 400 gk73a > honda vfr 400 NC30> Yamaha RD350 YPVS F2 > Kawasaki ZZR 600 D1 > Yamaha TZR 250 2MA >Suzuki TL1000R > Yamaha TDR250 > Honda 929 blade > Suzuki SV1000 > Honda H100
Mod 2 Passed 09/06/2011

[A100man]

[A100man]

well, whaddya know..

https://www.bbc.co.uk/news/business-64183817
____________________
Now: A100, GT250A, XJ598, FZ750

Then: Fizz, RS200, KL250, XJ550, Laverda Alpina, XJ600, FZS600

[MarJay]

[arry]

[SpiritMr89]

Saw the mortgage guy at my bank last aug. At the time (obviously things change). Was offered 90k with 15%, and that was on my own, and no credit score. Since i've only ever bought things when av got the money.
Only time i've ever had a loan is 15yr ago for my bike. So had to get a credit card, which is used for fuel. Then paid off imediately when out the shop.
____________________
Hello

[dave001]

you have be insane to get a morgage now wait a couple of years if you can

5% down bad deal
10% ok deal
15% better if you can do it

20-25% i way better

[dave001]

[dave001]

[Nobby the Bastard]

WTF is a credit score? I just go into the bank and get good deals.
____________________
trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Triumph Sprint ST 1050

[dave001]

[Nobby the Bastard]

No. I just walk into the bank and get a good deal.

My only asset is the house and I never made any money on selling assets to make capital gains.

I have never looked at my credit rating and have no idea what it is but I've never had an issue getting a loan. There again, it's rarely that I do. Just the mortgage generally.

It's quite funny to hear about someone who has not worked since the 80s going on about credit scores. How old were you when you stopped working? 5?
____________________
trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Triumph Sprint ST 1050

[Keithy]

Look here

https://www.hsbc.co.uk/mortgages/first-time-buyers/rates/

Gives you an idea of rates for first time mortgages. The higher the LTV the more you pay. There will be maximum of income multiples too, typically a maximum of 3x joint income means they would lend, let’s say your gross is £35k and your partners is £20k, you will get £55k x 3 = £165k. So if you are after a £200k property you need about £35k plus at the ready.

The more you have up front, the less you pay.

[dave001]

[to v or not to v]

have you looked at life a time ISA? (LISA).
if youre under 40. i think you can save £4000 a year and the government will add up to a grand on top.
https://www.moneysavingexpert.com/savings/lifetime-isas/
____________________
current bike Yamaha Thunderace.
its old and fat, but its a damned good ride. the bikes not bad either.

[virus]

3 bits of advice:

1) Get involved in a LISA to get a bonus towards your deposit.
2) find a mortgage advisor you can trust for sensible up to date financial advice.
3) dont take financial advice from someone who cant spell financial.

[Nobby the Bastard]

You do realise that I'm an accountant? Please don't tell me about how the tax system and other financial systems work.

If you are paid in anything other than money (in the majority of cases) it's considered a benefit in kind and is taxable in eactly the same way as money is.

Capital gains tax is only paid on the increase from it's value when you received it to it's value when it's sold.

You cannot offset the loan against the capital gains tax.

TBH you've demonstated a fundamental failure to understand the taxation system.

https://www.crunch.co.uk/knowledge-tax/what-are-benefits-in-kind
____________________
trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Triumph Sprint ST 1050

[Nobby the Bastard]

Mr ' I have money spraying out of my arse since the 80s yet can barely even spell my own name' has gone a bit quiet.
____________________
trevor saxe-coburg-gotha:"Remember this simple rule - scooters are for men who like to feel the breeze on their huge, flapping cunt lips."
Triumph Sprint ST 1050