Does a 15% deposit make a huge difference?

Moseydo82

If we are going for a £150,000 and put down £15,000 would it make a huge difference, risk wise, than if we put down 15% (£22.500)?

I know we would get better rates but does it make a lot of difference when underwriting?

oli_ro

From my personal experience, it only will make a difference if you are around the affordability level.

The bank's criteria(employment, income, property, etc) and desired risk profile(credit records, etc) are applied "black and white" fashion, irrespective of LTV.

Thrugelmir

The mortgage itself depends on affordability and your credit profile. Also a better LTV may widen the number of lenders and therefore products available to choose from.

Moseydo82

Ah ok, thanks.

I'm in the process of applying to the post office and wondered if it would make it better to put down the 15%.

amnblog

Yes it does - but go for your preference first and scale downhill if necessary.

OneEngland

Anything over 85% is classed as high LTV and will be treated so, your application will could go through a more thorough examination. If speed of offer is important, you may want to put down 15% plus deposit.

Moseydo82

We have put down £22,500 so 15%