10% or 15% deposit?...

alja

Hi, I don't know a lot about mortgages/deposits etc etc as I still live at home, however, I would like to save towards a deposit for my own home...

I've heard lately that most deposits that are put down are 15% of the total house cost, is this correct?

Or are you able to get a house with a 10% deposit quite easily?

I would like a rough idea of how much money to save up deposit wise for a £150,000 house for example...

I am very good with my money, already have some savings & have a credit card which I use to build up my good credit rating....I never EVER spend money on it that I know I cannot afford etc etc..

would I be in a position to be able to get a house with a 10% deposit (or possibly lower) due to the fact that I'm good with my money?

any help would be great! thanks!

SJ08

I'm hoping to buy this year and have worked to a 15% deposit because you get a better rate than a 10% deposit.

Also you will have more mortgage products available to you with a 15% deposit. There are lenders offering 90% mortgages but you will pay a high premium for them, so if you can save up for a 15% deposit then all the better.

alja

ahh, see I know nothing about all this kind of thing really, but did think that was the case! I shall try to aim for the 15% I think then, thank you for your quick reply!

josievg

As above - the higher deposit you have, the better deals will be on offer to you. But, yes, there are 90% mortgages available so 10% is the minimum you will need.

You should also work out affordability. To use your example of a house worth £150K - 10% deposit is £15K meaning you would need a mortgage of £135K. Whether you could get a mortgage for this amount would depend on your salary and outgoings.

alja

indeed, I hope I can do it in the end, would rather wait to afford a house of my own rather than move out and waste money on rent if I can help it