First time buyer . Deposit size to get good deal

Horlo2514

Hi all

I am planning to be on property ladder this year ( first time buyer)

I raised a 100 k deposit ( which was painful )
And also built up a good credit score ( mostly by using credit card for daily life and repay full balance each.month) concerning the mortgage. Most lenders on what I read give 4.5 your salary .but can it be 4.7 or even 5 if your loan to value Is 70 % ? How does it work
Thank you for your advice
Matt

ACG

There are no set rules as such, but yes there are lenders who will go above 4.5x income with as little as a 10% deposit.

The more your deposit, the more options you will have at the higher income multiples.

Have a play around on lenders affordability calculators if you are unsure or speak to a broker. But there are lenders who will go to 4.7-4.8 x income or even as high as 5x without too many issues.

mpr87

i'm also a FTB and recently had a mortgage accepted (just playing the exchange/completion waiting game now)



We saw a Mortgage broker and have got out LTV ratio to 75% in order to get a better rate. we were originally going to put down a bit less as a deposit but we had the extra money so will save us in the long run. I think the next point at which we would have got a better deal still would have been a 40% deposit (60% LTV) but i'm not certain and that would have been a push for us.



If you use a mortgage comparison site such as uswitch for instance that will give you a good idea of what difference a higher deposit will make to the overall repayments/interest rates.

Slithery

Horlo2514 wrote: »

And also built up a good credit score

Your credit 'score' given to you by Experian and the likes is irrelevant, it's never seen by lenders.

The important thing is your credit history, income and outgoings.