what % deposit required these days?

undlou

Hello all,

The flat we plan to buy is currently worth £215,000 (based in south Essex Nr London) but will very likely rise by the time we have a deposit. My partner and I are able to save £15k a year, but we are both unsure what percentage is required now? I understand all mortgage offers are different, I just wanted an idea of how much we need to aim for.

Also, are mortgages different for leasehold flats and freehold houses?

Thank you :rotfl:

SharkBite

5% minimum. 10% better. 15% ideal

The more deposit you have the better the interest rates you'll attract and your mortgage payments will be cheaper.

The cheaper the payments, the better the chance you will be accepted by a lender.

undlou

Thank you SharkBite, better than I expected

Richard_Pia

A mortgage deal should be the same irrespective of the property being a leasehold flat or freehold house. Some policy restrictions can apply however depending on property type, for example on flats in tall blocks, or on new builds. Many lenders won't lend on freehold flats as well, but these are less common.

There is currently a significant number of 5% mortgages available - highest number in 10 years - so there should be plenty of options for you.

brit1234

Richard_Pia wrote: »

There is currently a significant number of 5% mortgages available - highest number in 10 years - so there should be plenty of options for you.

Reminds me on 2007-8 all over again crazy to have such a low deposit (5%) especially as prices are so inflated. The lower the deposit the bigger chance you will be in negative equity if prices fall.

caronoel

brit1234 wrote: »

Reminds me on 2007-8 all over again crazy to have such a low deposit (5%) especially as prices are so inflated. The lower the deposit the bigger chance you will be in negative equity if prices fall.

You can safely ignore the wisdom of brit1234. He has been on this site for over 10 years now predicting gloom and doom.

Shame is that he missed his chance to buy in London in 2009, when he used to boast that he was sitting on a large deposit and living cheaply for next to nowt in rented police accommodation.

The day that brit1234 finally buys is the day that I sell all my (small) property portfolio.