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Percentage of deposit: property price or amount borrowed?
steveyme
Posts: 67 Forumite
Stupidly simple question when you know the answer, but when my property deposit savings are shown as a percentage to find the best mortgage deal, is that percentage worked out from the amount I need to borrow after the deposit or including the deposit?
ie. Deposit: £40k
Property Value: £230k
Amount borrowed: £190k
Deposit = 17.4% (of total property price)
Deposit = 21% (of money borrowed)
Am I right in assuming it's the first calculation? Thanks!
ie. Deposit: £40k
Property Value: £230k
Amount borrowed: £190k
Deposit = 17.4% (of total property price)
Deposit = 21% (of money borrowed)
Am I right in assuming it's the first calculation? Thanks!
0
Comments
-
Its the first calculation.
Mortgage size divided by Price (or value whichever is lower) X 100I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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