5% Deposits

Potbellypig

Anyone had experience with 5% deposits from main high street banks? First time buyer and I've been looking around and HSBC has given me a DIP for 5% deposit on £250k. Perhaps naively, I always thought it was 10% unless it was help to buy.

Anything I need to be weary of with these?

[Deleted User]

Rates are slightly higher. Not all lenders offer them. Credit scoring requirements are higher.

5% mortgages are a huge part of the market now so no, nothing you need to be particularly aware of.

Maybe just be aware its a lot easier to slip in to negative equity at any given time so making short jumps up the property ladder is trickier.

stu2500

I used NatWest for my 5% mortgage in 2018, all went well but we weren't asking to lend a lot compared to our salaries. The rate was poor at 4.9% though, we're looking forward to remortgaging this year to reduce our term/payments.

[Deleted User]

Rates on 5% have come down a lot in the last 18 months. Now looking at under 3% for high street lenders. Still some really rubbish ones out there but they have generally come down a lot