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
Decorating Tips for Selling Your Property
8 days ago
Selling up? It’s important to make your house as appealing as possible to potential buyers. Good decorating can help with first impressions, and increase the perceived value of your property.
20 Budget-Friendly Activities
27 days ago
With the cost of living affecting so many of us, we have made a list of budget-friendly activities and ideas for you.
Moving and Packing Tips for a Stress-Free Move
21 Jul 2023
Moving soon? It's never too early to get organised! Be prepared and avoid unwanted stress by checking out our list of tips to get you ready for moving day.
What is the UK Inflation Rate?
27 Jun 2023
Inflation simply put, is the increase in the price of something over time. The Office for National Statistics (ONS) tracks the prices of hundreds of everyday items and these items are updated to reflect shopping trends.
Debt Consolidation into a Mortgage
20 Jun 2023
We are often asked if it's good advice to consolidate “unsecured” debt (credit cards and loans etc) into your mortgage, the answer is, sometimes.
Parking Rules Explained
16 Jun 2023
When you’re looking to buy a home, and you own a car, you ideally want to know the rules on parking in the area. Parking rules can be confusing, even for the most experienced of drivers! This is why we have written this blog to help you.
Sources of Deposit to Buy a Property
6 Jun 2023
There are several potential sources you can consider when it comes to getting together a deposit to buy a property. Providing proof of the source of your deposit is a key requirement in the application process and will need to be given to both the lender and the solicitor.
What is a Mortgage Prisoner?
26 May 2023
Mortgage Prisoners are people who are unable to switch mortgages to a better deal, despite being up-to-date with their mortgage payments.
More information
Trusted by
