JamieMacdonald

I'm hopefully going to be taking my fisrt step onto the bottom rung of the property ladder soon and need some advice. My savings are pretty much non existent, they just about balance with what is left to pay off on the Scooby (a couple of G's). The property/ies I am looking at are in the £80-90k bracket. I have a year left to repay the loan but could clear it now using my savings. So should I:

a) Pay the loan off and try to get a 100% mortgage and just find the money to cover fees etc.

b) Keep paying the loan off for the next year and put £1-2k down as a deposit.

I know the bigger the deposit the more choice/better deals you can get on a mortgage but for the sake of such a small deposit is it worth it or should I just go for a 100% mortgage? The repayments shouldn't be too much of a problem, my next payrise (overdue - grr [img]images/smilies/mad.gif[/img]) should take me into the 40% tax bracket.

The risk factor of a 100% mortgage doesn't really bother me, plus I will be getting a few £k's worth of shares in a couple of years so I could pay off a chunk when that comes through (could access it now but would lose about 20% - or would I make that back if I use it towards the deposit (could get about 3.5k altogether)???).

Sorry but this is all very new/scary/confusing to me!
Been living the playboy lifestyle for too long, secretly hoping my folks have been saving all my rent up to give back to me (I wish)!

J

ChrisB

From my looking a few months back, the biggest range of choices were for 95% LTV (Loan to Value) or under. Above 95% and MIGs become a popular charge (circa £1000 in many cases )

fast bloke

Try http://www.mortgage-express.co.uk/

Mortgage express will give 105% of the purchase price, so give you a few quid to cover stamp duty, fees etc and they do NOT charge Mig.

If it was me, I would keep the savings and try for a 105% morgage. You really need to get below 90% to get intho the better discounted deals, and you will no doubt need to buy things for the house once purchased

Chrisgr31

I would keep the savings and go for a 100% mortgage. You may even find a few lenders who are prepared to pay most fees.

Buying a house doesn't end at paying the mortgage, survey fees etc. Theres furniture, painting and decorating, gardening etc all to be thought about. Having a reserve pot of money would be useful for the unexpected itmes!

JamieMacdonald

90k only buys you a pokey lil flat round my way, so a garden isn't going to be an issue! But I know what you mean about additional expenses, which is why I don't want to wipe out all my savings when I do buy somewhere.

I checked the website above, the most they will lend to a FTB is 102% LTV, I think that is the sort of thing I need to be looking at.

Cheers, Jay