How long is a piece of string? There are many variables at play when considering the ideal deposit to make your house purchase, but the primary one is most likely to be “What is the minimum deposit I can get away with to buy this house?”
Most of us, especially in our early years in the housing market, stretch ourselves to buy the best house we can afford. This is usually a balancing act between location, size and then add-ons like off street parking, garage, extra bedroom… swimming pool? OK, so most of us have to wait a while for the pool, but a minimum number of bedrooms and a location near a decent school are probably high on most family’s wish lists.
Post Credit Crunch, mortgage lenders are under a greater obligation than ever to make sure that the loans they make are affordable. They are also keen to see their customers putting some of their own money into the purchase. Therefore, at present, you will be required to put down a minimum of 5% of the purchase price, leaving 95% on mortgage.
In simple terms, the more deposit you can scrape together, the better the mortgage terms and the better the interest rate you are likely to obtain. Also, with a larger deposit you are of course borrowing less and there is therefore less to pay back and mortgage repayments will be cheaper.
The best deals on the market will usually require a 40% deposit, but with most first time buyers having between 5% and 20% to put down, there are mortgages to suit all. Of course, this is only part of the equation.
For an initial, no obligation, discussion to clarify your options why contact us or call now on 01628 507477.
Recent posts
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
Pros and Cons of Equity Release
14 days ago
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
Your House Viewing Checklist
15 days ago
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
Half of over 60s predicted to benefit from accessing housing wealth through Equity Release
18 days ago
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
Average Age of the First Time Buyer in the UK
25 days ago
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
Delayed Start Mortgage from Skipton
27 days ago
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
More information
Trusted by
