How much deposit do I need?

Posted on 9 June 2011 by andrew buxton


How much deposit do I need for a house valued at £93000 and what would the repayments be on a repayment mortgage over 15 years?

Andrew

You will need a deposit of at least 10% of the purchase price, but you will need to save more than this to cover the associated costs, such as Solicitor's fees, of buying a property.

Whilst 10% may be enough for a selection of Lenders to consider you for a mortgage, you will find that the choice of Lender, product type and rate increases the more you are able to put down.  The size of deposit also has an affect on how likely you are to have your mortgage application accepted and I would strongly recommend saving a larger deposit if you are able.

With regards to the monthly repayments you can use the payment calculator on this website: https://www.charcol.co.uk/mortgagecalculator/mortgage-repayment-calculator/

Using one of the best 5 year Fixed rates currently on the market I calculated a payment of £538.76 on a loan of £83700 over 25 years.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to offer further advice on your situation.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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