Mortgage Deposit for house purchase
A Mortgage Deposit is the amount you may need to provide towards the purchase of a house or property. The balance of the house purchase price or property purchase price will be funded by your mortgage.
Read on for our in-depth look at the Mortgage Deposit, how much deposit you are likely to need when it comes to house purchase / property purchase, and how we can assist with arranging a mortgage that suits you!
Table of Contents:
What is a Mortgage Deposit?
So as we touched upon during the introductory paragraphs, a Mortgage deposit is the amount of money you might have to provide towards the purchase of a house or property. The balance of the house purchase price will be funded by your mortgage.
Will I need to pay a deposit on my mortgage?
Nowadays, the necessity for a deposit on a mortgage is greater than ever, although the mortgage marketplace always have a huge variety of schemes that cater for both first-time buyers and home-movers. For example, some schemes allow for a member of your family to become a guarantor on the mortgage with you.
The other alternative many people are looking at, is obtaining a sum of money from friends or family (usually parents) to form part or all of the deposit. Sometimes generous parents will even raise the deposit by releasing cash from the equity tied up in their own property. At Shire, we may be able to help with this, so give us a call if you would like to know more.
I have debt problems, so will I need a mortgage deposit?
If you have experienced any kind of debt problems, then you will certainly require a mortgage deposit. Exactly how much will depend on both the market conditions and the extent of your debt problems.
Many people will find themselves experiencing a blip with their finances at one point or another in their lives, and often through no fault of their own. Illness, redundancy and personal problems can often play havoc with an otherwise unblemished credit history. So the requirement for a deposit depends on the extent of any difficulties you may have experienced with a default or County Court Judgement (CCJ).
How much will I need as a deposit for my mortgage if I have a poor credit history?
That depends on the extent of your difficulties! With some lenders, we may be able to accommodate unlimited CCJ's, defaults and mortgage arrears, and may still be able to arrange mortgage borrowing up to 75% of the loan to value (LTV) of your property.
Will the size of my Mortgage Deposit affect the Interest Rate?
The amount of your Mortgage Deposit can affect the Interest Rate, yes! With some lenders, the greater the deposit, or loan-to-valuation, the lower the rate of interest.
How quickly could Shire Direct let me know if they can help?
We can usually provide you with an immediate in-principle decision, based on brief details that you provide to us. However, advice and a recommendation will follow on after a Shire Direct qualified mortgage advisor has carried out a financial review with you.
Hopefully we've explained the Mortgage Deposit and how it works, and have managed to answer any questions you had with regards to them. If you are looking into house purchase and are interested in exploring your options further please don't hesitate to give us a call on Freephone 08000 282 281 (Lines open until 10 at night everyday including weekends), or Contact us online anytime, and we'll be delighted to provide you with an in-principle decision - whatever your circumstances. We'd love to hear from you!
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
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Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.