Can you have irregular deposit amounts?

zzzt

To make the numbers easy let's say the bank says they are willing to lend me £100k on a mortgage with a 10% deposit. This means I can buy a house worth £111k with a deposit of £11.1k.

But what if I wanted to buy a house for £115k? A 10% deposit would be £11.5k, but combined with the bank's £100k that makes £112k. But what if I had a deposit of £15k? Would that work? It would effectively be an approx. 13% deposit.

Or does your deposit have to be an exact multiple of 5%?

CLAPTON

zzzt wrote: »

To make the numbers easy let's say the bank says they are willing to lend me £100k on a mortgage with a 10% deposit. This means I can buy a house worth £111k with a deposit of £11.1k.

But what if I wanted to buy a house for £115k? A 10% deposit would be £11.5k, but combined with the bank's £100k that makes £112k. But what if I had a deposit of £15k? Would that work? It would effectively be an approx. 13% deposit.

Or does your deposit have to be an exact multiple of 5%?

of course you can have a 13% deposit : the restrictions are entirely about minimum deposits

HappyMJ

zzzt wrote: »

To make the numbers easy let's say the bank says they are willing to lend me £100k on a mortgage with a 10% deposit. This means I can buy a house worth £111k with a deposit of £11.1k.

But what if I wanted to buy a house for £115k? A 10% deposit would be £11.5k, but combined with the bank's £100k that makes £112k. But what if I had a deposit of £15k? Would that work? It would effectively be an approx. 13% deposit.

Or does your deposit have to be an exact multiple of 5%?

You can have whatever deposit you want. If the bank is willing to lend up to £100k only you can spend any amount of money above that subject to the minimum deposit required. Of course the more you have...in multiples of 5%...brings you into the next bracket for lower interest rates. So get saving and borrow 85% of the purchase price if you can. £17,250 deposit and £97,750 would get you the £115,000 house at a slightly lower interest rate than borrowing £100,000 with a £15,000 deposit. I would even go far as to recommend you get a 0% on purchases credit card whilst saving every penny you earn to get you to the next bracket then pay off the credit card before the 0% offer expires.