Truth in slight deposit overpay.?

nik667

Hi all

My wife and I are now on the cusp of going through our mortgage application after having an offer accepted :j

We have our 5% deposit ready which equates to £9450 - I've read in Martin's first time buyer guide that overpaying this deposit by even £50-100 can mean the application process may be simplified in terms of what the lenders may ask for in terms of proof/paperwork etc...

So if we were to pay £9550 instead, is there any backup or truth to this theory?

amnblog

Don't believe all you read.


An extra £1,000 might make a difference but you don't even know yet if the case will work with £9,450 deposit.

nikh667

Okay thanks - I'll stick with the 95% exact if it won't necessarily help. Mortgage in principle today in advance of our meeting on Tuesday.

ACG

What he has said is kind of correct but only in very few circumstances and only with some lenders. At 95% or 95% + £50 I would say it is unlikely to make a difference to the outcome no matter which route you go down so just do whichever is the best.

copperclock

We did this. I think we put down an extra £500 so that we were a smidge less than 90%LTV. Our mortgage was approved within a couple of weeks, but it's impossible to tell what the outcome would have been had we not included the £500.