first time buyer short of deposit
Posted:
Thu Sep 10, 2023 10:00 amby paul samson
my partner and i have been renting for 18 moths but would like to buy our own house. problem is we would need to spend about £175,000 and our savings total "just" £12,000. I'm sure other people have been in this position. What can we do?
Re: first time buyer short of deposit
Posted:
Tue Sep 15, 2023 3:44 pmby Broker Boy
I'm afraid that many other prospective first time buyers are in the same position as you. Firstly work out how much money you really need for both the deposit, the legal fees and any furniture, decoration etc you will need to spend on the house. You then have 2 basic alternatives - beg your parents for a loan (!), use a credit card or take out a loan. The best solution is find a friendly relative but if you are tempted to take out a loan or use a credit card, be fully 100% certain that you can afford all the repayments you will face.
Please note that my comments do not formally constitute advice as I am not fully aware of your circumstances and taking out big financial committments is a major risk. Please take care and if in ANY doubt rent for another 12 months!
Have you thought about buying a house on a "shared equity deal" - this is where you buy say 60% of the house and rent the balance. You can then buy the portion of the house that you don't own as you finances improve.
Broker Boy