How much deposit do you have to put down when buying a house?
Asked on Feb 19 2013,
Home Finance in Wisbech |
Hi Natasha 1990,
The cost of a deposit will depend entirely on the price of the house you are buying. It will also vary from lender to lender and depending on what sort of mortgage product you choose to take on.
At the moment, however, the property market is still proving quite unpredictable, and lenders are taking fewer risks when it comes to approving house purchase loans. The downside of this for those who are looking to get a footing on the ladder is that the deposit levels are much higher than they used to be.
While people in the past would have been able to buy a house with a 90 per cent, or even higher, loan to value (LTV) mortgage, it is a lot lower these days. This means that as a first timer you might be expected to pay anything up to between 20 and 25 per cent of the cost of the house up front.
Answered on Feb 21 2013,
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