What Deposit % is required from BANKS + LENDERS for a Mortgage in 2012/now ?

Danny_G

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).

1) 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?

2) are you a banker?/lender? can you answer this, or have you applied for a mortgage? whats the % required?

3) 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?

ACG

10% minimum, maximum is everything bar £20k-25k.

No im a mortgage advisor.

Yes, some smaller lenders require 5% but the rates arnt great and i imagine they are quite selective.

Danny_G

ACG wrote: »

10% minimum, maximum is everything bar £20k-25k.

No im a mortgage advisor.

Yes, some smaller lenders require 5% but the rates arnt great and i imagine they are quite selective.

Can you give that £20k-25k as a Percentage ? ? in % terms please..
(as you have given it in ££).

ACG

Sorry, i should have explained.

The minimum mortgage you can get is around the £20-25k mark. So percentage wise it depends on the property price. If its £100k property then it would be a 75%, if its a £200k property then it would be about 87%.

Hopefully that explains it a bit more?

Danny_G

ACG wrote: »

Sorry, i should have explained.

The minimum mortgage you can get is around the £20-25k mark. So percentage wise it depends on the property price. If its £100k property then it would be a 75%, if its a £200k property then it would be about 87%.

ACG wrote: »

Hopefully that explains it a bit more?

It explains it a bit more.....but just some confusion

200k property then it would be about 87% ? why not 75%?

Minimum mortgage is £20 -£25 ? so you mean if the property is worth £100,000.... then the Buyer is a millionaire, and Provides 75%... = £75,000 then the mortgage will be £25,000?

I know the more the deposit, the lower the interest would be,...


Another question:
Also, what would be the approximate interest rate for somebody providing a 25% deposit.....on say a 100- 150K house?

- an approximate interest rate......say that:
a) a bank provides
b) a Non bank lender provides ?


a) + b) both at 25 % deposit, at a 100-150 k house..which I know will be approximate...but still....some rrough figures please.

ACG

£25k on a £200k property isnt 25%, its about half that.

a)Both banks and non banks would be around 4 - 4.5% interest rate.

Jane_gs

Do lenders still offer No proof of income mortgages?

self cerfified mortgages, where it is Not required to give your proof of incomes on slips?

[even if a larger deposit is needed, and the interest rates would be higher]

How much deposit % is needed for these types of mortgages (30% eg)
What are the ranges of interest rates, of these types of mortgages? (eg 5%- 5.75%)

Cheers

ACG

No.

Part of the reason we are where we are with the recession. Theyve been banned.

cats2012

Hi.

I have just bought as a first time buyer. I had a 15% deposit on a £150K house and got an interest rate of 4% over 30 years.

They needed proof of all income, bank statements etc.

Can't comment on others but that's our experience

alleycat`

cats2012 wrote: »

Hi.

I have just bought as a first time buyer. I had a 15% deposit on a £150K house and got an interest rate of 4% over 30 years.

They needed proof of all income, bank statements etc.

Can't comment on others but that's our experience

This reads like you got a 30 year fixed at 4%?
I'm impressed if you did....

cats2012

sorry didnt see this! and good point no it's not fixed for 30 years!! it's fixed for 3 years, but ironically the rate it would currently go down to is lower than that! but obviously i doubt that will be the case in3 years time.