Q: I am a first time buyer looking for the ladder earlyish next year.

My budget is set at a maximum of ￡ 235K.
If I suppose I buy something for this maximum limit how much should I take into account all costs,

stamp duty 1%, so ￡ 2350.
Mortgage arrangement fees seem to be around 500 ￡ mark.
Then I have my lawyer and survey fees – thinking about ￡ 1,000 for this?

I ￡ 10K currently have budgeted for the fees and then buying things like bed / other furniture etc. when Im in (currently renting a room in furnished accommodation)

Also, my deposit would be ￡ ~ 55K when I to purchase, representing approximately 23-24% of the ￡ 235K figure.
Do you think it would be worth either reduce my budget by a few thousand or so wait to make sure I have the magic 25% deposit ?
Im currently saving around ￡ 1K per month so it should not be much longer if I choose to save a little more.

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A:Fees I know I have to pay or have already paid:

£695 for Valuation and Homebuyer survey
£699 for Mortgage arrangement which is combined into our mortgage
£600 solicitor
£2,400 Stamp Duty
£xx not sure how much searches will be

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A:I'm thinking of buying around Clapham/Balham area (work in Canary Wharf so want to be a bit nearer work but also want to stay around the west side of London) Still not the cheapest of areas!

Thanks for the info on Home Information Packs, I didn't know about them. Seems like a good idea.

Hey John, We are in the process of buying, next step is exchanging contracts. We have family in Balham and Clapham so had decided to stay around this area. We are buying in Mitcham which just a bit ahead of Tooting, get alot more better value for money there, than Clapham or Balham. Thornoton Heath was even more cheaper than Mitcham, but I prefered the area in Mitcham.

Maybe keep your options open, we are buying a 3 bed semi in Mitcham for 240k……

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A:Northern line to London Bridge, then Jubilee – easy!
It sure beats my current journey to Waterloo. South West trains have to be the worst train company in existence

I probably would move to somewhere like Greenwich if the only aim was to be close to work, but most of my friends live around West London so want to stay this side.

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A:And not the most convenient either! Balham to the wharf youd never catch me doing that journey!

Id sooner choose greenwich- but thats just me!

All the best with it

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A:I'm thinking of buying around Clapham/Balham area (work in Canary Wharf so want to be a bit nearer work but also want to stay around the west side of London) Still not the cheapest of areas!

Thanks for the info on Home Information Packs, I didn't know about them. Seems like a good idea.

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A:are you looking to buy in Twickenham?

Also to say, Home information packs are coming in in ?june? july?

If you wait till then the vendor has to pay for all the searches- not the buyers – so theres moneysaving there to if you can wait that long

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A:Yeah, I know I'm fortunate to have the deposit I do, luckily my grandparents invested some money for me when I was a child and it's done quite well.
I've been saving hard for 4 years as well myself though to get me into this position.
Unfortunately I'll still probably only be able to afford a 1 bedroom or small 2 bedroom flat where I am looking though

To be honest I thought the best deals on mortgages were reserved for those with 25% deposit. I do plan on seeing a mortgage broker in the new year so hopefully I'll have a better idea of things then.

I actually work for a bank too, but at the minute they don't offer mortgage deals for employees (not in Europe anyway!)

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A:I think you are in an excellent position, having such a significant deposit- plenty dont.

In any case while you are looking ( most purchases take approx 3 months) youll have another 3k saved

Im not sure really whether 25% deposit is that "magic". In fact 5% seems adequate to get the cheaper deals in any case. In saying that of course its moneysaving to have as big a deposit as poss, on the smallest mortgage as poss, as clearly interest on the mortgage is THE biggest expense in buying your own home.

Have you seen a whole of market broker? They should be able to tell you what deals are around for someone in your position

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