First Time Buyer - Question on applying for mortgage

Hi,

I'm looking to purchase my first home. I'm 26 male in full time employment on 41,000 a year. I've just really started saving in the last year and I currently have 11,000 saved as a deposit. I have no loans and nothing on the credit card. I'm come across my dream home (long term) which has an asking price of 130,000. (I'd be looking to buy at a lower price than that though.)

My questions is, Is there any point approaching my bank now about a mortgage of 130k (or even 120k) or is my deposit to small given that there is also stamp duty and other costs legal etc... to consider?

Hi,
Well, there is a lot more than the stamp duty, you have solicitors fees etc. You also have to furnish your new house, depending on your style and the no of rooms you won't get much for 10-15k and if you have to tile it or put in a kitchen etc 10-15k would be a cheap enough option. Banks will not fund you as part of the mortgage to furnish a house. Even though you have 8% of the value of the house, the banks will look at your overall financial stability and your job prospects. If I were you I'd save for a while more. Then again if you could negotiate a significant price drop and you want to move into a bare house and do it up over a number of years you might be ok but the banks will be happier to lend the greater your deposit. They will also look at why you have only started saving in the last year.
Regards
Mike