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Deposit has to be 10% or 15% of value?
StarGazer85
Posts: 12 Forumite
Sorry if this is a silly question...
I am currently saving for a deposit and when I eventually buy (maybe not for a year or 2) I would like to put down as much as possible - I'm currently saving as much as I can each month so could I put down everything I have saved (minus the associated fees) as the deposit and then the mortgage would be the exact % of the value remaining - for example 87% or something like that? Or do mortgage products only come in say bands of 5% like 90% LTV etc..
Hope that makes sense
Thank you
I am currently saving for a deposit and when I eventually buy (maybe not for a year or 2) I would like to put down as much as possible - I'm currently saving as much as I can each month so could I put down everything I have saved (minus the associated fees) as the deposit and then the mortgage would be the exact % of the value remaining - for example 87% or something like that? Or do mortgage products only come in say bands of 5% like 90% LTV etc..
Hope that makes sense
Thank you
0
Comments
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The mortgage product is max LTV. So if you want to borrow 88% on a 90% product, that's fine.
At the moment, there's not much difference between the 85% and 90% rates. Don't push yourself to get the the 85% if you'll have no rainy day money left over."Real knowledge is to know the extent of one's ignorance" - Confucius0 -
You can put down 5, 10, 15% deposit or anything in between.
So you could end up with 11.58% deposit. You would still end up on a 90% product, but you would only be paying interest on the 88ish%.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, 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 -
As said by kinger dont push yourself to the last penny, you need funds for unexpected (and expected) expenses.
What is your reasoning for wanting to put down "as much as possible" ?0
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