What do you consider a large deposit?

serious_saver

There's a lot of talk about FTB's being priced out of the housing market because they can't save the necessary deposit.

I'm quite proud of the deposit that we have saved but it seems to get us nowhere when it comes to mortgage applications because (as I've mentioned in previous post) I have been working freelance.

So I was wondering what other people would consider a large deposit to be?

tim_n

25-99% the value of the house, but seriously 25% of the property is usually seen as being substantial enough with good credit rating for the purchase of a property. I've had to rely on bank of mum and dad for mine, for which I'm very grateful.

shimano

I'd probably say around 40% or more.

I had to put down 26% (about 75k) as a FTB (London)

de1amo

if the job criterior doesnt suit the lender no amount of deposit will seal the deal--they are only looking for sure fired cast iron incomes and there arent many of those about in this economy--with the back drop of the possible drop in house prices it will get even tighter.

MobileSaver

shimano wrote: »

I'd probably say around 40% or more.

I agree with Shimano, the best rates are for 60% LTV so a 40% deposit is where you should be aiming.

firstaspect

I think you should be looking for at minimum 15% deposit, but if you can get up to 20-25% then far better. Reaching 40%+ is often just not realistic for a FTB and while it gives better rates it's not essential.
I'm a next time buyer and using a 15% deposit and there's been no issues with getting a mortgage and I'll have no problems with the repayments.

JimmyTheWig

I'd say...

<5% - no deposit
5% - small deposit
10% - deposit
25% - decent deposit
40% - large deposit

I agree that 25%+ is unrealistic for a FTB.

de1amo

as the OP says--its the freelance nature of his employment--its not a guaranteed income and i am guessing the respondents who have no trouble with obtaining mortgages have safe employment.--be interesting to know what the typical apr these deals are being offered at--i am currently on 1pc apr which reflects the bank of england base rate!

LittleMissAspie

In my opinion:
under 15% = poor
15-20% = okay
20-25% = good
over 25% = excellent

As FTBs we put down 25% which we saved while renting privately. It was hard work but possible.

serious_saver

de1amo wrote: »

as the OP says--its the freelance nature of his employment--its not a guaranteed income and i am guessing the respondents who have no trouble with obtaining mortgages have safe employment.--be interesting to know what the typical apr these deals are being offered at--i am currently on 1pc apr which reflects the bank of england base rate!

Thank you! I fear that at the rate things are going we'll probably end up buying somewhere outright before we ever get offered a mortgage!

I'm sure things will pick up because financially we do absolutley fine, have no debt (except for student loans), a good credit rating and manage to save well . . . but for the time being it's just exasperating :wall:

de1amo

if the potents of doom are to be believed there will be a sharp fall in prices--i have a home in the uk with a small mortgage and i accept that inevitability will happen post 2008 --the banks are needing to tighten credit and boost their balance sheets and the mortgage lender is a sitting duck. i think your best waiting til the fall and see how much your deposit will get you.-for me a correction is a good thing and i hope it will be the same for you.
my apr is low and to all you ftbs who are paying high fees and probably about 5pc--that 500pc higher than the real rate-plus the banks want all your deposit cash--cant lose can they!!