Deposits are usually required by a lender when you are interested in taking out a mortgage. The minimum deposit for residential property is 5-10% of the property value.
Regarding commercial mortgages, you would be looking at between 25-35% deposit. When it comes to commercial mortgages the deposit amount that you pay will depend on factors, type of property, risk level, etc.
The deposit could work out to be quite a hefty sum, dependent on the size of the property and current market value.
A simple rule of thumb is that the bigger the deposit, the better interest rates, and terms you will receive.
Did you know that you can use a gifted deposit from family? You could use your family’s home as the deposit, to raise enough to take out a mortgage.
Also, did you know? – that you could be eligible for a mortgage without a deposit if you meet the lender’s criteria.
A key thing to remember with any mortgage is key advice from the FCA (Financial Conduct Authority) “your home may be repossessed if you do not keep up with payments”.
Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk