How much do I need for a deposit for my first house is often the first question most people ask when meeting with our mortgage advisers here at Vantage Mortgages in Banbury
How much Deposit for I need?
The answer we like to give is, probably less than you think!
Saving a deposit for your first home can seem like a never-ending task! With house prices fluctuating so regularly, it’s hard to keep track of just how much you need to buy the house you’ve been dreaming of.
Generally speaking, the more deposit you have, the better mortgage rate you’ll be able to get and so, the less it will cost you each month.
In an ideal world, 10% of the property purchase price would be a great deposit to have. That said, a lot of lenders are now accepting as little as 5% minimum deposit for first time buyers and home movers.
You can get a mortgage with a 5% deposit
Having a 5% deposit though does increase the interest rate a little compared to having a bigger deposit. This could mean your monthly mortgage payment would be higher, but not necessarily unaffordable!
This is not a problem though for a lot of people we see, who have a good income, but just not much cash in the savings pot!
There are a few schemes available now that allow a family member to use some of their own equity or even some of their savings to give you a helping hand onto the property ladder.
Don’t forget there are other costs involved in buying a house. you will also need a bit put aside for legal fee’s, surveyors’ costs and mortgage arrangement fee’s.
For more information please contact one of our team today.
