F***ing s**tloads! Next question!
The trick to overcoming the deposit hurdles is to arm yourself with as much knowledge as possible.
‘An increasing number of lenders will allow as little as 5% to be contributed by the buyer, however affordability and credit checks are more stringent than if you were to put down a larger deposit. ‘For buyers who want to stretch their borrowing capacity as far as possible, a deposit of at least 15% is desirable, providing access to more flexible lenders and criteria.’In simpler terms, the higher deposit you have saved up, the better chance that you’ll be granted the mortgage you need for the home, and the better interest rates are available to you.
‘Mortgages typically have a lending limit for between 4-5x someone’s salary, so if you earned £30,000 – you could borrow around 4x this, so £120,000. Most homes are much more than this, so buyers need a bigger deposit to make up the difference. Bear in mind that these are rough figures, so if you want a more exact amount, book a meeting with a mortgage advisor.Are you looking at a sad piggy bank with not nearly enough money for a house deposit?
If you don’t have anyone to help you fork up the cash, there are still other options available, including the aforementioned LTV mortgage or getting a guarantor.
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