I am 21, wanting to get onto the property ladder and would like to put down a good deposit! Can anyone help by telling what would be a good amount????
2007-02-25 22:46:38 · 13 answers · asked by dansxcmini 1 in Business & Finance ➔ Renting & Real Estate
Considering that savings rate are not very attractive and adjustable mortgage rates keep climbing in one direction only, I would recommend that you invest at least thirty percent in the down payment so that you very quickly acquire a safe equity on the asset and wont face an eviction or other risks, even if there are any ups and downs in the economy.Thereafter also I would recommend you to build up a buffer savings pool to meet any such eventuality so that the repayments can continue unaffected..
This is for own residence. In case you are planning to invest for growth of capital, invest the minimum but be alert to tap deals that can be leveraged without sinking your own capital. Join a professional training program on investing in real estate.
Since you are twentyone, I recommend to you Michael Masterson's Seven Years to Seven Figures( A Best Seller even on NYT list).There is another book for freshers and some interesting seminars to attend too, which can have life altering consequences for you.
2007-02-25 23:12:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you are in England, the costs these days of buying a house for the first time could be £25k. That's because of solicitor's fees, stamp duty, deposit etc etc. Also remember that the average house price in the UK is £250k. See if you can get a mortgage and then decide how much deposit you want to pay. I would say as much as possible because then you are more likely to get a mortgage. I'm no expert though and it might be good to speak to an independent mortgage advisor.
2007-02-26 06:55:06 · answer #2 · answered by happy 3 · 0⤊ 0⤋
I put down 5% of the value of my house. I ended up having a £5000 deposit. I suppose you could put down whatever you wanted at the end of the day though. Reading some answers, the mortgage I got didn't require a deposit at all. I just put that down because I wanted to reduce my mortgage as much as I could. You can find some mortgage places that don't require one at all.
2007-02-26 06:52:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can put down as much as you like, with most lenders it's 5% but you get better rates if you put down 10% or more. You don't actually need a deposit, you can get 100% mortgages or even 105% mortgages, but you don't get as a good a rate. As you are a first time buyer, you can get good deals. Try Stonebridge Mortgage group - they will do the research for you and get the best deal on the market for you. - That's who I'm using.
2007-02-26 07:07:07 · answer #4 · answered by Easy Rider 2 · 0⤊ 0⤋
It's usally 5% of the buying price ie: house....£150000 then you would need £7500. Some lenders want 10%! but i also think that some lenders will do a 100% mortgage meaning that you don't have to put a deposit down but your monthly repayments will increase quite abit. But remember you have all your solicitor bills to pay during the completion of the house.
2007-02-26 06:52:43 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Depends entirely on the value of the property you want to buy!
To get the good mortgage rates (i.e. ones that don't charge a fortune in interest) then 10% is a good amount.
You can get away with 1% deposits (or even 0%) but as said already they really jack the interest rate up.
2007-02-26 06:51:08 · answer #6 · answered by Robin the Electrocuted 5 · 0⤊ 0⤋
As much as you possibly can. The more you put down, the less you will be borrowing and thus paying interest on.
20% but I've seen people get into houses with practically nothing down too. You just wind up borrowing that much more and paying a ton more interest.
People don't realize that on a 30 year mortgage, by the time you've paid it off over 30 years, you've paid triple for that house. Play around with mortgage calculators sometime. It is amazing how much money we spend on interest.
2007-02-26 06:53:39 · answer #7 · answered by Faye H 6 · 1⤊ 0⤋
A minimum of 10% is acceptable, but as much as you can afford is ideal.
A mortgage advisor would be able to tell you what sort of mortgages are available to you with your current wage, and how much of a deposit you are likely to need to put down.
Your local estate agent usually has an independant mortgage advisor on site, you don't usually charge - give them a call and get going on your journey to property ownership!
2007-02-26 06:51:00 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I reckon for a semi-decent place that isn't in some crack estate in Lewisham you'd need about ten thousand quid. Assuming thats 5-10% of the mortgage that = a place of £100,000-200,000 which is just below the average for the UK
start saving!
2007-02-26 07:08:07 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Probably 5% would be enough to get a decent interest rate - remember additional expenses like survey fees, lawyers bill etc.
2007-02-26 06:56:12 · answer #10 · answered by julie g 3 · 0⤊ 0⤋