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
Many households are still being affected by the high cost of living, with several people worrying about how they can make ends meet on a monthly-basis. Unfortunately, the cost of bills including, water, council tax, and energy are still rising. Here are some things you can do.
The Renters’ Rights Bill represents a significant milestone designed to enhance the rights and protections of tenants in the rental market. This comprehensive bill aims to foster a more balanced and fair rental sector, ensuring that tenants can enjoy greater security and equitable treatment. It is likely to become law in late 2025.
Limited Company vs Single Name Buy to Let
15 days ago
Owning a buy-to-let property in your sole name versus through a limited company each has its own set of advantages and disadvantages.
Top 10 property price hotspots in 2024
21 days ago
Data from Rightmove shows that Sunbury-on-Thames in Surrey was the number one house price hotspot in 2024. The prices in this area climbed an impressive 12.5% - increasing from an average price of £527,005 in 2023 to £592,926 in 2024.
Buy to Let Stamp Duty Changes April 2025
24 days ago
On the 31st October 2024 stamp duty for those purchasing additional properties increased by 2% from 3% to 5%.
From 1st April 2025 the threshold will be reducing from £250,000 to £125,000
Where did Londoners move to in 2024?
24 Jan 2025
Research from Metro shows that those who chose to move home didn’t actually move that far away. With a 430g pack of chicken costing on average almost double in London than the rest of the UK, it's no wonder some people are choosing a change of scenery to save a few pennies.
Reasons to get a Buy to Let Mortgage
20 Jan 2025
Following recent changes in the Buy to Let market, some investors may find this product less appealing. However, if done correctly, building a buy to let portfolio can be very profitable.
Stamp duty: how is it changing in 2025?
7 Jan 2025
Helping you understand the upcoming changes in stamp duty (SDLT) from April 2025.
More information
Trusted by
