What is the lowest deposit to put down?

[Mumofoneandanotherontheway]

Realistically on a 300k property what is the lowest deposit that can be put down?
Also what other fees are to be paid?
It would be our first home, on 1 income of £19k salary
Is this even achievable?
Tia x

10% is the lowest but they are limited, 15% would allow you much more flexibility in rates etc. No stamp duty!! Solicitors fees of about £5000. I don't think you would be approved on that salary alone, sorry, unless you had a large deposit of over 50%

It's very unlikely, tbh. At 3.92% over 25 years, a £300000 mortgage would be £1570 per month. On a salary of £19000, your monthly pre-tax income is £1583.

Affordability checks normally mean you will only be lent up to 4.5-5x salary unfortunately so it would have to be £200,000 + ...

Theres no way you'll be able to borrow that much on a 19k salary.

Minimum deposit is usually 10% but in lockdown a lot of lenders are wanting more.

Perhaps after its all over there will be 5 and 10% deposits again.

I think the cap on borrowing is just under 5 times your annual wage, although if there are any other regular outgoings they would be taken off first. This would mean the absolute maximum you would be able to borrow would be £90,000. So the minimum deposit you would need would be £210,000.

In terms of fees you would need to allow for solicitors fees for conveyancing, mortgage arrangement fees and stamp duty - unless you are a first time buyer in which case I think you may be exempt up to £300K purchase price but check this online.

Sorry but I don't think it's achievable on that one salary unless you have 50%ish saved up. Best speak to a mortgage advisor though who'll go through your finances etc and tell you what you are likely to be approved for.

It used to be 5% deposit was the minimum (so £15k on a £300k house) but in today's market/climate 10% is more common (so £30k).

However on a £19k salary the absolute max you could borrow would be about £85k (it is based on a multiple of salary). So unfortunately I don't think it's going to be possible to buy a £300k house unless you have some serious savings or can increase your income in some way. Have you looked into shared ownership at all?

Other fees are solicitors fees (I'd budget at least £2500), valuation fee (£250 but more if you want a home buyers report or full structural survey which is advisable), mortgage application fees (can be up to £1000 but can sometimes be added to the mortgage) and removal costs (depends on how far you are going and how much you are prepared to do yourselves but budget at least £250 for hire of a van and to buy packing materials). Sensible to budget £5000 for fees I think...

We haven’t considered anything as of yet. I’m just going by prices for a 2-3bed in our area.
Does anyone have more info in shared ownership? How does it work?
I thought that was only through housing associations. I may be wrong. Also the pros cons of it all?

For shared ownership you would need to investigate the options in your area as they are all slightly different. If you Google there will a website. But yes they will all be with Housing Associations.

There are mortgage calculators where you can type in what you’ve got and they’ll tell you what you can borrow.

First one I found
www.halifax.co.uk/mortgages/mortgage-calculator/calculator/?WT.ac=calcintnewhome

@Mumofoneandanotherontheway

We haven’t considered anything as of yet. I’m just going by prices for a 2-3bed in our area. Does anyone have more info in shared ownership? How does it work? I thought that was only through housing associations. I may be wrong. Also the pros cons of it all?

Go and play around with a couple of mortgage affordability calculators. Google “mortgage lending affordability calculators” or look at the websites of lenders such as Halifax, Nationwode, LeedsBS. They will give you an idea of what you can borrow, repayments, interest rates, etc.

At the moment you’re just stumbling around in the dark.

For Shared ownership google “Shared ownership ” or look on your local council website.

Or this one
www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing/

Is there no possibility of there being two incomes? I think one income of £19k is going to make it tough.
How much do you have in savings?

Thank you for the links, will definitely look into them this evening.
greysish not at the moment no, as I have a 18m old who will start nursery in January. I can then look for work. We’ve saved 20k.

I'd be surprised if you were offered a mortgage for more than 100K on that wage I'm afraid.

But to add that some banks take universal credit into account as an income if you receive it?

For Shared ownership purchase you will need to register with your local Homebuy agency (which will. be different depending where you are.. For example here its 'Help to Buy south'. Just google 'Homebuy Agency' and your area and the correct one will come up .

They will help you access shared ownership mortgages and will have the available properties listed online ..You will have to register with them first and they will give you a financial assessment of what you can afford.. Some shared ownership Housing schemes will be will be built by Housing Associations and some could be from larger developers i.e Barratts. They are mostly new-builds but some are Resales .. .

Most Shared ownership start at about 30% share and there is rent to pay on the other half as well , each property will have the discount and rent shown.. You should be able to do it with your deposit and 19k salary (again depending where you are if London then no.)

This is correct info , I used to do this as a job!

foolishlyfoolish yes we get universal credit too

Have you opened a lifetime isa? You get a 25% deposit bonus free from the government for houses up to 450k value. So for every £4000 you save, you get an extra £1000 on top.

I have a £255k flat on a single income of £30k and the only reason I sneaked in that high a value property was being lucky enough to have a 30% mortgage through inheritance.

Without an enormous deposit I don't see you being able to borrow £300k on that income at all OP, sorry.

@Mumofoneandanotherontheway

foolishlyfoolish yes we get universal credit too

In which case that would increase your income. I know NatWest used to take it into account but you'd have to check if they still do.

Ah thank you. Thank you everyone for all your advise. I’m planning to start looking for work towards the end of the year so I can get into something when little one goes to nursery.
For now I think we will just carry on saving & keeping our head down x