HELP TO BUY: putting in a deposit of 5.1%?

FTBSOS

Hi there, upon regarding other threads, It seems you might increase the chances of being accepted for a mortgage if you add a little bit on the deposit for a mortgage.

So I have a 5% deposit, if I make it 5.1% along with the gov 20% loan, it brings the LTV down to 74.9%?

Does this make sense and worth doing?

Thrugelmir

You'll need to meet all the lending criteria to obtain a mortgage, not just the deposit.

kingstreet

It might, who knows?

Typically, if you are declined with 5% a decent broker would try alternatives to see what they need to do to get a pass. Once you've been credit checked for the higher amount another search isn't done for a lower one, so no more footprints.

It's a process called "ski-ing downhill" trying to get an alternative if your first option isn't available.

dgtazzman

From what I read of the scheme, the government will bring the LTV up to a MAXIMUM of 25%, so you wouldn't be getting a 20% equity loan if you put down 5.1% yourself...

kingstreet

dgtazzman wrote: »

From what I read of the scheme, the government will bring the LTV up to a MAXIMUM of 25%, so you wouldn't be getting a 20% equity loan if you put down 5.1% yourself...

The deposit is a normally a minimum of 5%, although one or two lenders accept less. The loan is a maximum of 20%. The buyer is required to provide at least 80% from their own resources, either mortgage or deposit;-

This mortgage, together with any cash contribution from you, must be a minimum of 80% of the full purchase price

http://www.homesandcommunities.co.uk/sites/default/files/our-work/help_to_buy_buyers_guide_080413.pdf

See page 3.