Buying a house with 5% deposit

[Ilovecakeallday]

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

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

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

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

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!

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

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

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.

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.

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

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!).