How to get a 95% mortgage?

My monthly earnings about £1600-£1700. As a single man this is hard but other people do it I live in London right now been trying to save at home with parents but I really need my space we don't get on anymore. I head going to mortgage advisor is the first step but what about the deposit? would it be £5000 and what about other costs? Looking for one bedroom flat.

4 Answers

  • 8 months ago

    I doubt thats enough to buy much in London.  Thats around $20k annually (pounds, I know) the most you could afford is about 3 times your annual around $60k.  Find a flat for that amount and you might be ok.  

    You wont qualify for a $95k mortgage on a $100k flat.  

    Some people might say the 3 times rule is too conservative...I would disagree.  

  • Maxi
    Lv 7
    8 months ago

    Start by saving in a 'help to buy ISA' for every £200you save the Government give you £50 free, up to £3k, so your deposit increases. Then research and find out what price are one bed flats/bedsits costing... that will give you an idea

    £1600ish works out at being able to potentially loan up to £249,600 in mortgage and the majority of mortgage companies expect you to have a deposit of 10%.... so if a property is £200k, you will need minimum of £20k deposit and a mortgae of £190k you will also need legal costs on top of that and you can find them by phoning around solicitors and asking their charges for purchase only

  • J
    Lv 7
    8 months ago

    There are "help to buy" schemes available for first time buyers. These can make the difference if you are on a low income with a small deposit available.

  • 8 months ago

    Go see the mortgage adviser. They will tell you precisely what you will require.

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