What is considered a "good" deposit

**Amy**

Hi All

Just wondered what you consider as a "decent" or "good" deposit for a property.

Im not talking about what is required by mortgage companies etc. more what you think?

Chris2685

I think 15% would be good, although I guess the more the better really!

vicky_kidder

i think, especially as a first time buyer with no chance of having any equity to back you up, 10% is a more realistic figure of what you will be able to get together. Think about it, on a £150,000 house that's £15,000, and then you need to have money for solicitors fees, mortgage arrangement fees, furniture etc, so £20,000 is probably a relaistic all together sum. However, as chris has said, the more the better and if you're not a first time buyer this may be easier.

**Amy**

I know roughly what I will have when hopefully i decide to buy, I was just wondering what everyone else thought was a decent amount.

Obviously it will be relative to house prices at the time of purchase, but 10% does seem to be what I am looking at.

Richard_Webster

OK this thread was about how much to save up.

Just to remind people that solicitors use the word "deposit" to refer to the amount put down at exchange of contracts to bind the buyer to the deal, which is never more than 10% and in the days when 95%+ mortgages were common, was often signifcantly less.

**Amy**

Richard_Webster wrote: »

OK this thread was about how much to save up.

Just to remind people that solicitors use the word "deposit" to refer to the amount put down at exchange of contracts to bind the buyer to the deal, which is never more than 10% and in the days when 95%+ mortgages were common, was often signifcantly less.

Ah right. Ok what i meant was how much money is deemed "good" to be put towards the buying of a house.

Icey77

Richard_Webster wrote: »

Just to remind people that solicitors use the word "deposit" to refer to the amount put down at exchange of contracts to bind the buyer to the deal, which is never more than 10% and in the days when 95%+ mortgages were common, was often signifcantly less.

Really? I put down 17% when I bought my current flat - most of the proceeds of the sale of my previous flat less some for fees etc etc.

lonestar1

Ideally 100% any lower and your paying the lender money for the priviledge.

In essence the higher the better these days I would say at least 20% (Just to guard against future price falls) althought the best deals may need 50% for you to be able to get them

lostinrates

I think I'd be even more pedantic about it and suggest that there should be a good 'deposit' (point taking though Richard Webster ) which is acceptable by lenders (and no return to 100/125% mortages) of between 10-20% but that anything above that is what is REALLY a good deposit.

LandyAndy

Icey77 wrote: »

Really? I put down 17% when I bought my current flat - most of the proceeds of the sale of my previous flat less some for fees etc etc.

You paid 17% at exchange? Did you use a solicitor?

Chris2685

Is it possible to get a mortgage on an LTV of say 90% and then offset the 90% value for the remainder of the mortgage? Effectively getting yourself a 25 year 0% loan? The only downside I can see is that if you just used the money to buy it outright, you would own the house completely from day 1, and could save and earn interest on any savings.
The upsides seem to outweigh that though, giving you (say for a 200k house) 180k in the bank for a rainy day that is not yet 'locked up' in the property.