Generic mortgage application query?

Row14

Hi,

New to the forum. I have what i think is a generic query that somebody can help with? (hopefully)

Myself and my partner are now at the point where we can start putting some money aside for a deposit, we haven't been able to before due to childcare fees/maternity leave etc

My question is, i'm wondering what size deposit we would need?

I have 3 old defaults, due to drop off my credit history next year. And an arrangement to pay also due to drop off next year all at the same time, after this my history is 'clean'. I've always had in my head that due to these any mortgage applications before they drop off would need at least 15-20% deposit with a sub prime lender regardless of age of the defaults?

Is this the case, or due to how old they are and us be financially stable now and finances being kept in order would there be a possibility of 5% option being available if we applied before they expire? I'm aware other things can impact an app too however we have everything else in order, its just a case of savings the funds now.

If anyone can shed any light that would be very helpful! Thanks!

enthusiasticsaver

The lower interest rates are usually available with a 15% to 20% deposit but 10% is usually recommended as a minimum. Few lenders do 5% deposits but if you go to a broker they may know which if any do. Some brokers also specialise in poor credit history borrowers.

ACG

I think you will probably need a 10% deposit to have a chance at reasonable rates.
There is a lender who may consider you with a 5% deposit but you would end up paying around 5% on the Mortgage. If you can get to 10% deposit, there is a possibility you would end up paying around 2.5%.