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  • FIRST POST
    • undlou
    • By undlou 14th Mar 18, 10:28 AM
    • 48Posts
    • 27Thanks
    undlou
    what % deposit required these days?
    • #1
    • 14th Mar 18, 10:28 AM
    what % deposit required these days? 14th Mar 18 at 10:28 AM
    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
Page 1
    • SharkBite
    • By SharkBite 14th Mar 18, 10:34 AM
    • 40 Posts
    • 26 Thanks
    SharkBite
    • #2
    • 14th Mar 18, 10:34 AM
    • #2
    • 14th Mar 18, 10:34 AM
    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
    • By undlou 14th Mar 18, 11:27 AM
    • 48 Posts
    • 27 Thanks
    undlou
    • #3
    • 14th Mar 18, 11:27 AM
    • #3
    • 14th Mar 18, 11:27 AM
    Thank you SharkBite, better than I expected
    • Richard_Pia
    • By Richard_Pia 14th Mar 18, 7:08 PM
    • 62 Posts
    • 31 Thanks
    Richard_Pia
    • #4
    • 14th Mar 18, 7:08 PM
    • #4
    • 14th Mar 18, 7:08 PM
    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.
    I am a Mortgage Adviser

    You 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.
    • brit1234
    • By brit1234 14th Mar 18, 11:47 PM
    • 5,187 Posts
    • 11,961 Thanks
    brit1234
    • #5
    • 14th Mar 18, 11:47 PM
    • #5
    • 14th Mar 18, 11:47 PM
    There is currently a significant number of 5% mortgages available - highest number in 10 years - so there should be plenty of options for you.
    Originally posted by Richard_Pia

    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.
    Scams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
    • caronoel
    • By caronoel 13th Apr 18, 3:48 PM
    • 882 Posts
    • 1,132 Thanks
    caronoel
    • #6
    • 13th Apr 18, 3:48 PM
    • #6
    • 13th Apr 18, 3:48 PM
    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.
    Originally posted by brit1234
    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.
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