Deposit percentage

Razzen

The current rules for second time buyers state that you need a 20% deposit. So while paying an existing mortgage this is going to be hugely difficult.

I know that banks have some wriggle room in how they apply this. Has anyone managed to agree a much lower deposit rate with their bank? Any recommendations how best to secure a lower deposit rate rather than having to just wait it out and save the full 20%

Dwarf.Shortage

Razzen wrote: »

The current rules for second time buyers state that you need a 20% deposit. So while paying an existing mortgage this is going to be hugely difficult.

I know that banks have some wriggle room in how they apply this. Has anyone managed to agree a much lower deposit rate with their bank? Any recommendations how best to secure a lower deposit rate rather than having to just wait it out and save the full 20%

If you're already paying a mortgage then any equity you have will constitute part of your deposit. So the amount you've to save in cash can be calculated as 20% of value of new house - sale price of old house + value of mortgage on existing house.

If you don't have any equity or are in negative equity unfortunately your prospects of being able to finance an upgrade are quite bleak under the new rules, they've really locked a lot of people into negative equity situations.

In terms of the 20% being waived I believe it is usually particularly strong employment prospects and future salary growth that would encourage the lender to make an exception.

Razzen

Cheers,

Yes that is pretty much the situation we're in, we have some negative equity, it's not much, but it still has to be added to our 20%

guess we wont be moving anytime soon