How much of a Deposit will I need?

What is the minimum deposit for a mortgage?

The minimum deposit required for a traditional mortgage is currently 5%. There are some exceptions to this rule. See the next item below 'No Deposit?' for full details.

Mortgage lenders offer their 95% mortgages only if you have a good credit profile.
If you have a bad credit rating or have had defaults, CCJ's or multiple missed payments within the last 6 years, you will not be eligible for a 95% mortgage with a 5% deposit. Depending on the level of bad credit you may need at least a 15% deposit.

No Deposit?

 

The Springboard Mortgage

The Springboard Mortgage will require a family member to put a 10% deposit into a savings account for 3 years. This will be held for that time and the family member would pay interest of around 1.5% (correct at the time of writing). There is no maximum age and Barclays will not look at the family members income, just yours. After 3 years the family member would be able to take the funds out if they so wish. You will need to be employed with a good credit rating (no missed payments, defaults or County Court judgements in the last 6 years) and your income must be high enough to afford the mortgage.

 

Shared Ownership (100% lending on your share)

There are mortgage lenders who will lend 100% of your property share when buying a shared ownership property. Firstly, find out if you qualify for the Shared Ownership scheme by applying on their website. If you are eligible for the scheme and you are employed with a good credit rating (no multiple missed payments, defaults or County Court judgements in the last 6 years), then contact our mortgage brokers for more information.

 

Right to Buy

If you are eligible to buy a Council House then there are mortgage lenders who can use the discount on the property as your deposit, meaning that with some mortgage lenders you do not need to find extra funds for the deposit. Get an eligibility check for Right to Buy. You will need to be employed with a good credit rating (no multiple missed payments, defaults or County Court judgements in the last 6 years) and your income must be high enough to afford the mortgage.

 

 

 


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