5% deposits

[Unknown199318]

Hi guys,

I’m pretty clueless when it comes to mortgages but I know the basics and I’ll be getting a mortgage advisor to take me through the steps. I will be first time buyer.

My question is, has anyone recently purchased a property on a 5% deposit? (Not through help to buy as I know this has ended) I know there are these types of offers out there but most people I know had around 20% deposit. I have been advised most people don’t get accepted on 5% or even 10% deposits, I’m not sure if this is true though.

I’m going to be buying on my own and will have no help from any family members. Recently broke up with my ex and things aren’t great back at home with my parents (to say the least).

I’ll be looking to purchase a proper for around £80,000-£110,000. I am on a decent wage but I am desperate to get out.

Thanks!

We’re hopefully exchanging soon on a property with a 5%. It was absolutely no problem at all but we have a combined almost 6 figure income. We got the amount we needed with no issues at all, even with a lot of debt. We went to London and Country and they got us an offer with Santander.

Thank you for your reply, this gives me hope. I can save for a bigger deposit but time is not on my side!

@GorgeousLadyofWrestling, can I ask, are you FTB?

We have a HH income around the same amount and we're shocked at what we can't afford! We had a 5% deposit on our first house and assumed we'd have a 10% for our next, but it's looking now like we either stick it out another couple of years here, which we really don't want to do, or get another 5% (if we can) on a bigger mortgage.

I know what the sensible answer is 🤷‍♀️

OreoCheeseCake - yep FTB. We live in London and got our flat for a really good price for the area (needs work). But when we’d been looking for MIP, a lot of lenders were fine with 5%.

There are loads of 95% mortgages on the market at the moment, so long as you’re on a sensible income multiple, and have a good credit history, you should be able to find a lender

we got a 5% deposit mortgage 18 months ago, we bought a house nearly 5 times our joint incomes at the time but had very good credit and affordability rating apparently, the mortgage adviser was slightly surprised that it came up as along us the 5% deposit option. we were 22 and 26 at the time and got a 40 year term.

Our buyer has a 5% deposit the agent and solicitors say it’s unusual but becoming more common

I bought my first little house on my own in June this year, my budget was in your bracket (obviously nowhere near London!) on a 5% deposit. You need an excellent credit rating I think. I had a Help To Buy Isa, which meant the government put in £50 for each £200. That bonus went towards the deposit too. My monthly repayments are less than my rent was 3 years ago but over 35 years. I have opened a separate bank account for overpayments but I'll throw a lump sum at it once per year instead of every month incase I need the money for unexpected bills. My MB said he will get in touch when the first 2 years are up to redo and hopefully lower the monthly payments even more. Hope that helps x

5% deposits are becoming common place again, most high street lenders now offer them and more are steadily coming o board.

You'll need an impeccable credit history and a decent income multiple to get access to those offering the better rates.

We're buying with a 95% LTV and havent had any issues in receiving a mortgage offer. Hopefully look at remortgaging in a few years time when theres equity in the property at a better LTV and better rates.

I bought in sept 2018 with a 5% deposit, no problem whatsoever.

Ignore all the nay sayers, who in my experience have had hefty help from the bank of mum and dad!

I’m not that fortunate to be getting ANY help from anyone so saving a 10% deposit when I am desperate to buy seems impossible!

Thank you for sharing your experience! I have seen various lenders do 95% ltv but have heard they are really hard to get

Help to buy hasnt ended

We did a couple of years ago, but our income multiple was way above the one we needed for the mortgage, and our credit score was basically perfect. We just needed to move into somewhere fast and hadn't had a chance to get much of a deposit together. We had a choice of several though, it wasn't an issue at all.