95% LTV in todays buyers market

[fbnono]

Finally got our deposit, but we’d be fools, right?
It’s hundreds of pounds cheaper to stay renting and our rent is housing association so only goes up by a tiny percentage each year. We would only be able to afford something small not our forever home so would have to move at some point so we need to think about the chance of negative equity , stamp duty & all things like that

Sorry

yabu- still worth it
yanbu - would be stupid to do this right now with inflation

Is wait it out and keep saving towards the forever home

Meant to be I'd not is

Thats what we are wondering, i wish it was easy to climb the ladder like you used to be able to but thats not really a thing anymore and will possibly leave us in a precarious position if we try

I would try to take advantage of high interest savings accounts for now personally.

House prices will have to fall soon. Although the cheaper end of the market might not fall much because there’ll be more competition from people who would have spent more but now can’t.

If your rent is affordable and your savings sitting in an account with a good rate of interest, I don’t think it would hurt to wait and see what happens? See if you can get to a 10% deposit maybe.

I would absolutely wait it out whilst you are in a 'cheap' and secure tenancy, the higher your deposit the better at the end of the day so I'd be using this time to not only keep saving as quickly as you can but also maximise the savings you do have as much as possible by choosing the best easy access high interest account.

@Hazelnuttella that’s true about more competition. Didn’t think of that!

@WhatCameFirstTheChickenOrTheDickhead yes I thought about investing it elsewhere tbh something easy access and seeing what return we get on it. Love your username btw thats great haha

Thanks @Orchidgal

Thanks

I don't keep track of other banks but in with Chase and they have already emailed today to say their savings account is going up to 3.8% (0.5% from 3.3%) from 3rd July, you might be able to get slightly higher but it's definitely great how receptive they are to the BOE rate hikes compared to many other banks!

Also it's a song lyric so can't take all the credit !!

I really do think conditions are rife for a real crash. Not this week but unless something drastic happens within a couple of years.

If you've got a secure and affordable place to live and with interest rates rising and house prices falling, I'd wait.

Most places are offering over 4% instant access now

Thank you, I do think there will be a crash too tbh reading news today

To be clear I don’t want a crash to happen as that would be terrible for everyone due to remortgage but it would be good if prices come down to give first time buyers a chance

Will take a look at Chase!

Remember your rent is going nowhere but paying a mortgage increases your equity. I think it depends what you are buying and where. Could you buy your HA house or get a renovation project?

That is true. Worried about the costs of renovating though atm

Absolutely not. Keep saving there's no rush to get on the ladder right now, you're better off as you are. Just keep building your savings.

I'd be tempted to wait a while for prices to crash correct and then swoop in and try to snap up a bargain.

Thank you. We just feel somewhat limited as we’d hoped to get a new car and TTC, all things we were trying not to do until we buy a house but judging by the current economic situation who knows when thats gonna be

Thank you @AllyCart we hope to be able to do this to be honest

Money saving expert is good for comparing savings accounts.

Regular savers tend to be the highest interest if you’re sure you won’t need to use the money for 12 months.
So if you have your deposit in an account, you can set up standing orders to lots of different regular savers and then you’ll have a nice little interest payout at the end of the year.

Ooh. That sounds worth doing.