Basically, the bigger the deposit you put down, the cheaper the mortgage. While some lenders are prepared to lend up to 95% of the property price, with the borrower putting in the remaining 5% as a deposit, better deals and rates are available to those who can put down, say, 20% or even more.
It’s important to remember there are also fees and charges that you will be required to pay as part of the process of putting your mortgage in place, so you’ll need to have savings in place to pay for these too.
Saving up for a deposit can be hard going, and the best advice is to start saving as much as you can as early as you can. The more you can put down as a deposit, the better the deal you can expect to be offered. Increasingly, more and more first-time buyers are offered financial help from their parents and grandparents.
Would like to say a big thank you for the professional and very helpful service that you have supplied. Every time we had a question Dan would ensure that he replied as quickly as possible and he would also ensure that we understood everything that we where going through at every stage.
Again a big thank you for guiding us through our re-mortgage.
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Before you start looking for a property to buy, it’s really worth speaking to me. I can help you work out how much you’re likely to be able to borrow, and give you useful hints and tips that will help you prepare for the mortgage application process.
You might fancy buying an unusual property, but it’s wise to remember that lenders can be quite conservative. Some lenders are unlikely to lend on flats above shops or businesses, and others won’t consider houseboats or homes that aren’t made out of bricks and mortar. If you’re buying an older property, your lender will need to be sure there aren’t hidden problems that could be costly to put right in the future. That’s why you need to have a survey done.