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how much deposit required
bexster26
Posts: 10 Forumite
Hi, can anyone tell me how deposit the banks require you to have to take out a new mortgage? thanks
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Comments
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10% min hhhhhhhhhhhhhhhhhhhhhhhhhh0
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God really! Its for a friend of mine - he is a first time buyer but has no deposit so are thinking of getting a loan to raise the funds for a deposit0
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They're not the best rates at 10% deposit either. You're looking at the top end of 5% compared to a base rate of 1%!Everything that is supposed to be in heaven is already here on earth.
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sorry, do you mean i'd get a better rate with a 5% deposit - sorry quite new at all this mortgage stuff!0
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I think you or your friend needs to do a lot of homework - get him/her to see a broker.
Nope, youd get a worse rate with 5% - the good rates are 20% deposit or more (doozer was talking about the amount of interest on the loan that you will have to pay). The point being people with little money for a deposit are not a good/safe bet as a borrower, so the less money you have of your own to put down as a deposit, the less credit worthy you are to the lender.0 -
Nope, youd get a worse rate with 5% - the good rates are 20% deposit or more (doozer was talking about the amount of interest on the loan that you will have to pay). The point being people with little money for a deposit are not a good/safe bet as a borrower, so the less money you have of your own to put down as a deposit, the less credit worthy you are to the lender.
yes - "top end of 5%" was the interest rate, not the amount of deposit!Everything that is supposed to be in heaven is already here on earth.
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God really! Its for a friend of mine - he is a first time buyer but has no deposit so are thinking of getting a loan to raise the funds for a deposit
I'm in a similar boat, best not to get the loan as this will go on his credit report as unsecured debt and he will be less likely to get a decent mortgage. Instead its probably best to try and save up and hopefully watch the house prices drop. After all, he should be able to save AT LEAST the payments on the loan.
Also if he has no savings now, would he be able to meet mortgage payments AND loan payments?0 -
he already has three loans which we we looking at consolidating and because of this thats why we were thinking of borrowing more to put down as a deposit for a house and lessening the amount he pays on the loans. Is it better just to concentrate on the loans then?0
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Yes, I think he needs to clear those loans before he thinks of borrowing any more money.0
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he already has three loans which we we looking at consolidating and because of this thats why we were thinking of borrowing more to put down as a deposit for a house and lessening the amount he pays on the loans. Is it better just to concentrate on the loans then?
Oh my. He needs the debt free wannabe board, not this one.
If he has three outstanding loans he is living beyond his means. He needs to take responsibility for himself before he lands himself in any more trouble. One loan for car might be acceptable - but three separate loans?
Consolidating loans by taking out more loans and adding to the debt with a big fat mortgage is not sensible at all.
Mortgage lenders will look at his debt anyway and will likely reduce the amount they will borrow by the amount he owes. If that is still enough to buy a house then the guy is earning well and spending even more, without even being a homeowner
Everything that is supposed to be in heaven is already here on earth.
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