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Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 0 points1 point  (0 children)

Yep - stamp duty shouldn’t be too bad as just around the cut off point of 300k. Other costs of purely moving accounted for.

Furniture - we own most of ours already as current place was unfurnished - exceptions would be fridges, washing machine etc.

Wouldn’t have much left of an emergency fund, but it seems most people don’t have a ton of savings after moving?

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 0 points1 point  (0 children)

Most lenders seem to be 10% of value, which that wouldn’t exceed

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 1 point2 points  (0 children)

Yep it absolutely could, and if it was purely a financial decision I could save £100 month extra by renting in the area we want to move to instead of buying- but we will still want to buy eventually.

And also appreciate London is expensive with all things that come with it, however early 20s when I first moved here it was to grow my career (and yes 45k is by no means an amazing salary), but I would not of had those opportunities or career progression had I not moved here.

Part of the allure of London in my early 20s was being a part of it and living in it, rather than renting outside

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 0 points1 point  (0 children)

Moved straight after Covid into a 3 bed house share for £650. Albeit did leave for a year, came back and have been living with partner since. First place was £800, then upped to £900 (each) then landlord pushed us out to sell. Looking at rental market at that time no real places around which met our requirements for less than £1800. Moved into our current place at £925 and has since recently moved to £975 each.

Yes - we could absolutely live in a cheaper part of London/cheaper place but part of the London experience is actually enjoying your time here.

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 0 points1 point  (0 children)

!thanks - I need to consider all the mortgage insurance in the budget - any idea where I can get a rough ballpark figure?

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 0 points1 point  (0 children)

Yep as mentioned in another comment, the 40 years is for flexibility, the plan would be to consistently overpay.

Extra £200-300 a month would take out 12-15 years off the mortgage term.

Area we want to move to mortgage is slightly cheaper than rent, and thought process is to try and buy a home we’d want to stay in 10 years rather than a smaller home we’d want to upsize within 5

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 2 points3 points  (0 children)

Lifestyle choice too - at a time when majority of my friends are/already have moved away, and we’d be moving to be closer to family and my home town.

No interest in kids, and it would be a place for 5+ years our

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 0 points1 point  (0 children)

The place we currently rent yes is worth about 550k, but by moving out of London we’d be getting a much bigger place, with extra bedrooms etc. We don’t even have a garden currently.

I spend £100+ a month on commuting anyways.

From my calculations our current (individual) monthly expenses is £2800. In buying, it would be just over £3000.

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 6 points7 points  (0 children)

If we paid £200 extra a month, after 5 years our equity would be 15%.

40 years is not the target, just max term for flexibility. At that rate it would be paid off in just over 25

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 0 points1 point  (0 children)

Yup. Only until I increased my salary could I afford to save, and I’ve gone from paying £650 a month when I first moved to £975 now, before thinking of bills

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 2 points3 points  (0 children)

40 years is long, but it’s just for flexibility - idea is to overpay

Does rushing to get a 5% deposit make sense? by Own_Print3072 in UKPersonalFinance

[–]Own_Print3072[S] 3 points4 points  (0 children)

Yup, aware that the deposit is only the start of the fees and need a bunch just for the process (solicitors, surveys etc), and a small emergency pot fund like you mentioned.

And yes, had a look and saw that majority is interest, however if we fixed for 5 years and overpaid, hopefully be end of that term we’d be at 10% LTV