Buying home with 5% deposit...

[Poolbirthx2]

Myself and dh are currently renting and really struggling to save a deposit to buy. Is it possible to get a mortgage with only a 5% deposit?

Im new to this and its all so confusing

Tia

It is possible but the deposit is only the first hurdle. You'll need to be able to meet the lenders affordability on the loan.

Put your details onto a few mainstream lenders on line affordability calculators and that will give you an idea of what is possible.

Yes. We looked into to it and were offered a mortgage for £140K house (dp earns around £45K-good credit rating and very secure job, I'm a SAHM) with a £7K deposit. We didn't take it as the terms were so crap. Repayments were over £300pcm more than with 10% deposit, interest higher and all in all it would have cost us well over £40K more not to have that extra £7K. It depends so much on your personal circumstances but we've decided to wait to buy until we can afford more and get a better deal. It's crap renting though, just had to pay £160+credit reference check charge to apply for a house 8 other people are going for, at rent which would be £100 less than mortgage if we had the deposit (and still have to pay £800 rental deposit). But we don't have the cash so there you go.

Thanks for that - we have been accepted for a mortgage of £150,000 and monthly payments are not much more than renting but they are asking for a 15% deposit. We have found a lovely house for £130,000 but only have a 5% deposit currently.
Im waiting for an independent advisor to call me this afternoon - im just so clueless at this!

OP be careful of making applications left right and centre as that in itself will harm your chances of getting a mortgage.

A good independent advisor is the right move to hopefully find you a lender that will be prepared to give you what you want.

You might be able to raise the other 10% through some other kind of loan deal or even borrow it from family IF you can cope with the repayments.

Is the Government';s recent "Help to Buy" 5% deposit scheme still operating? Do a google search of helptobuy.