House deposit

[whiskeysheri]

What is the amount you should pay as a deposit for a house? Is it usually a set percentage?

Thanks

[STAH]

Hi there whiskeysheri.

The answer depends on who you choose to provide your mortgage. Some like to see a 5% deposit, others like to see 10%. However, where I work, we do do 100% mortgages for graduates who hold a graduate account with the bank, and who have graduated in the last 5 years. Otherwise, all other customers have to have at least a 5% deposit up to �250,000

Shop around is the best advice that I can give you. Also, pay particular attention to the "overall cost of comparison" APR; this gives a true and accurate figure of the interest rate!

Good luck with your search.

[WoWo]

Also it should be noted the deposit isn't the same as you would pay a holding deposit on a car or holiday. The house seller usually doesn't get this money but the the mortgage provider does.

Generally the bigger deposit you have the better rate you will get. 100% mortgages tend to have a slightly higher percentage and also have lock in periods which stop you moving mortgage for a few years without paying a penalty.

[stevie21]

If you have a deposit of less than 10% then you sometimes have to pay an extra fee. In some cases, if your deposit is less than 10% the lender will take out an insurance policy against the resale value (at repossession?) being less than what's owed to them by you.
Have a look for (or ask the lender) about the Mortgage Indemnity Guarantee.
http://tinyurl.com/mss2w

[Thefixor]

most lenders will only offer 95% mortgages so that means you will have to put 5% of the asking perice as deposit yourselves.

some companires offer 100% mortgages which means no deposit but the rate of interest they offer you will reflect that

usually the more deposit you are prepared to put the better rate you will be offered so in the long run will be much cheaper

[whiskeysheri]

Thank you for all your info x