How much cash needed for mortgage?

Mandles

I have rented for years but am now starting to think about buying and have no clue about mortgages. So how much do you need behind you before banks will even consider offering you a mortgage?

lynzpower

you can do it with 100% mortgage, they are offered ( ie no deposit) they tend to attract higher interest rates over the term though.

I think it also depends on what size of mortgage you can get. I was offered 100% mortgage on shared ownership basis for 78k but as it was I got a gift ( my inheritance early...!! ) from my grandparents of 5k so I didnt need all of it x

roswell

aim for a 5% deposit plus costs for legal / morgage fees etc stamp duty if it applies.

Ian_W

Hi Mandles,
As roswell says 5% is good, 10% is even gooder!! Read up the mortgage section of the site and you'll get a better understanding of how mortgages work. There are some links to sites where you can put your details in and get the monthly costs etc. How much you can borrow is linked to earnings and varies from lender to lender, most work on about 3x gross annual salary but some will go as high as 5x, whilst others use more complicated affordability calculation.

HTH & BoL.