Manchester Mortgages receives a large number of enquiries regarding the amount of deposit required to obtain a mortgage.
The simple answer is that you will need a minimum of 5% with a number of Bank, Building Societies and specialist lenders offering a 95% mortgage.
The interest rates are higher and this is due to the risk to the lender. However not significantly higher than if you were to have a 10% deposit.
The general rule is the more deposit you have the lower the interest rate as it represents a lower risk to the lender.
It is quite common particularly for First Time Buyers to receive assistance from family members like Mum & Dad, Brother & Sister, Grand Parents but is not restricted to these relatives.
Some lenders will allow assistance from non family members also.
The important thing to remember is that if a family member is assisting with a gift it has to be non refundable (NOT A LOAN).
When buying your first property it is important that you fully understand how much you can borrow and how much deposit you will require so you can obtain a full understanding of your mortgage costs.
Manchester Mortgages provide FREE mortgage advice and have experienced advisers who are able to talk you through the house buying process.
Contact us on 0161 706 0242 or email info@manchestermortgages.co.uk
