An increasing number of young people are finding it harder and harder to save up a down payment on a house. To be honest, how much money do you really need to save? Is it possible to spend £10k on a home? Is that not enough in today’s crazy real estate market? It’s discussed in this article whether a £10k down payment is enough.
A 5% payment is what most lenders will accept.
We can say for sure that if you have a $10,000 down payment, you will not be able to get a mortgage for a home that is less than £200,000.
Deals with 4% or even 3% off are out there, but they’re hard to find. If you do find one of these deals, you might be able to settle for something nicer.
When it comes to price, where you live is important.
In many parts of the UK, £200,000 won’t get you a house. In many places of the country, it won’t even get you a one-bedroom flat. But you can get a house in some parts of the UK for less than £200k.
The average price of a house in North East England is £163k, while the average price of a house in Scotland is £185k. You might be able to own a house if you live here or are ready to move here.
Are you okay with living in a flat? There might be a lot more places you can live if you put down a £10k deposit. You might still have a hard time finding a home in London, but if you don’t need a lot of room, you might be able to find something in many other parts of the country.
When you pay less upfront, you pay more every month.
Keep in mind that a smaller down payment means more to pay back over time, which could mean higher costs upfront. If you’re still young, you might be able to get a mortgage with a term of 30 years. This could spread out the costs enough to make each payment pretty cheap. You may not be able to get these types of mortgages, though, if you’re a little older, and you will have to pay more each month.
A mortgage estimator is the best way to figure out how much you’ll have to pay each month. You can get these tools on the web.
Having a good credit score and income will help.
Mortgages aren’t just given out if the individual can pay the down payment. Unfortunately, you also have to meet other standards, such as having a certain amount of income and credit score.
These things are more likely to be taken into account with very low deposit mortgages. Things like your income and credit score become less important the bigger the down payment you can make.
Can you buy a house with a £10k down payment?
You can, but there are a lot of things that stop you. It’s not easy to save up more than £10k, but doing so could help you get a mortgage. If you save £15,000, you could home and buy worth £300,000, which would give you a lot more choices.
