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Buying a house with 5% deposit

(12 Posts)
Ilovecakeallday Wed 27-Sep-17 17:02:17

Hello,

Is it possible to buy with only 5% deposit? We both work full time, joint salary just under 50k but with rent etc finding it impossible to save a large deposit.

Ironically, mortgage payments would be lower.

Are there any lenders that would lend with such a low deposit or are we destined to rent forever?

Thanks

DueNov Wed 27-Sep-17 17:06:45

Yes there are. Best to get. A mortgage advisor. We used the mortgage advice bureau. Halifax would lend to us but we got a better deal with a santander in the end

SarcasticMrKnowItAll Wed 27-Sep-17 17:06:53

Hi, there are some lenders that will take a 5% deposit, your credit history will need to be very good though
Might be worth giving a broker a call for their advise for your particiular circumstances though

AllTheWhoresOfMalta Wed 27-Sep-17 17:08:02

You need a broker. Ours managed to sort this for us earlier this year with Nationwide.

DueNov Wed 27-Sep-17 17:15:33

And jsit for your info. Me and my partner had no credit history as we were 19and 20 at the time. I had my phone bill and that was it. And electeroll roll of course. A good advisor will get you a mortgage to suit you. We put down 5%. Which was £7400 as the house was £148,000. We were 19and 20 joint income of £34,000 at the time. This was 2 years ago. We had a higher interest rate. 4.45% I think?! Was £665a month mortgage. House prices now gone up and also borrowed £12,000 interest rate gone down due to the house price increase and now pay £550 a month!

Gizlotsmum Wed 27-Sep-17 17:16:45

We could have got a 5% deposit but went for 10% as lower payments but it is possible

Ilovecakeallday Wed 27-Sep-17 17:19:29

Thank you all, can anyone recommend a mortgage broker or is it best to try and find a local one?

99blueballoons Wed 27-Sep-17 17:22:08

We got a nationwide mortgage this year with a 5% deposit and the help to buy scheme. We went through London and country brokers (who are free) they were really good and organised everything.

JoJoSM2 Thu 28-Sep-17 23:03:32

Have a look on moneysupermarket. I've just had a look on there and they have plenty of 95% LTV mortgages listed. Fixed rates start at 3.2% (discounted variable cheaper). If you got a property for £150k, the monthly payment would be £690 on a 2-year fixed.

winterwinter Sun 01-Oct-17 17:43:47

We got turned down for a 5% from all major banks due to a less than perfect credit score, were left with no option but to come up with a bigger deposit. Cleared out our savings completely but got there in the end! Defo go through a broker

AwkwardPaws27 Mon 02-Oct-17 10:25:55

We borrowed with a 7% deposit on our first flat, 3.5 years ago. It was a high interest rate (4.95%) but after two years we were able to remortgage at 2.19%. We saw a broker, paid about £200 for his services but money well spent in our case.

We recently sold the flat and bought a house, so glad we bought when we did as our mortgage repayments on the house are similar to the rent for a 2 bed flat (although now our weekends are spent doing DIY!).

MortgageDiva Fri 06-Oct-17 19:10:37

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

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