Mortgage Deposit: Here’s what you need to know?

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”.

Journey Mortgages is a specialist broker that can help you with first-time buyer mortgages and more. Get in touch, and one of our friendly team with be happy to help you with your enquiry.

Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk

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A fee may be payable for mortgage advice. The exact amount will depend on your circumstances. Journey Mortgages Ltd is an appointed representative of Brompton Asset Finance Ltd, which is authorised and regulated by the Financial Conduct Authority, FCA number 727308. Journey Mortgages Ltd is authorised and regulated by the Financial Conduct Authority, FCA number 915911.

Company Registered in England and Wales, registration number 11823165. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE