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What Deposit % is required from BANKS + LENDERS for a Mortgage in this recession??
Danny_G
Posts: 719 Forumite
Banks used to want 5% of the value of the house as a down payment deposit before they give you the mortgage, and some lenders could do a 100% mortgage (no deposit required).
a) In this recession, where banks are not lending, what is the minimum/average % of deposit required to purchase a home? and what is the maximum?
b) are you a banker?/lender? can you answer this, or have you applied for a mortgage? whats the % required?
c) Is it the same for smaller independant Lenders- independent mortgage companies who lend money too? they have got tighter? if so, what % are they asking for in these times of depression?
a) In this recession, where banks are not lending, what is the minimum/average % of deposit required to purchase a home? and what is the maximum?
b) are you a banker?/lender? can you answer this, or have you applied for a mortgage? whats the % required?
c) Is it the same for smaller independant Lenders- independent mortgage companies who lend money too? they have got tighter? if so, what % are they asking for in these times of depression?
No Unapproved or Personal links in signatures please - FT3
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Comments
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The bigger the deposit the better
at least 10% and if you have 25% all the better
25% will also give you some of the best rates available0 -
5% minimum for ultra squeackey clean exceptional clients borrowing 3 x income (very few people will be accepted)
10% - still for top line clients only, but most people dont bother applying as rates are very high
15% is the minimum for average clients, still with good clean records, nice and straight forward, no erratic address history etc
For those with small credit belmishes, 15% on occasion might be accepted as long as the whole case looks good
20% if credit not so good, but still the risk must be low and the client present a good case
For quite poor credit 25% and up will be needed as deposit, but still the case needs to be low risk - no lender can now legaly lend where there is any whiff of irresponsible lending0 -
Thanks.
c) Is it the same for smaller independant Lenders- mortgage companies who lend money too? they have got tighter? if so, what % are they asking for in these times of depression?
No Unapproved or Personal links in signatures please - FT30 -
Brokers don't lend money, they act as a go-between between you and the lender.0
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Also, if the property you want to buy gets down valued during the survey, you'd have to come up with the % difference.0
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Brokers don't lend money, they act as a go-between between you and the lender.
If only we could underwrite and sanction the deals for the lenders though
I am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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