Saving for a mortgage deposit is one of the most difficult challenges for first time buyers. However your ambition should not be deterred. In recent years the government have launched initiatives to assist first time buyers. In addition – by speaking with a company who understands the market there will likely be more options available than you had initially imagined.
Your deposit is a percentage of the price of the property you wish to purchase. As a general rule you will need between 10% to 20% deposit. The bigger the deposit you are able to contribute the increased likelihood of a lender accepting your application. This is because you will be deemed as less of a risk. The other advantage of contributing a bigger deposit means you will likely be given a better interest rate – meaning you will pay less interest and keep your mortgage repayments lower.
There are instances where you can contribute as little as 5% deposit which we look at in more detail in our ‘Guarantor’ section.
If you have a deposit and would like to understand what is possible feel free to contact us by clicking here to arrange a free 15-minute consultation.
Please Note: The Mortgage Xchange is a partner of Scott & Goose LLP who are directly authorised by the Financial Conduct Authority under reference 661183. Your home may be repossessed if you do not keep up repayments on your mortgage.