For most First Time Buyers the hardest part of getting on the ladder is finding the initial outlay of a deposit not the additional costs involved such as Stamp Duty, Solicitors fees and surveys. But what difference does it make if you have pulled together a 5% deposit or a 10% deposit?
According to Which? quite a significant difference. They have done their research* and concluded that just a difference of £1,000 in deposit can be an extra £140 per month which is just shy of £2,450 based on a 2 year fixed rate loan.
Little gems like these may well twist the arm of the “Bank of Mum & Dad” enough to get you a mortgage that is currently just out of reach.
If you have any question or would like to discuss this further get in touch, as always we’d love to help.
To read the whole article please visit: http://www.which.co.uk/news/2017/02/how-first-time-buyers-can-save-thousands-with-a-90-mortgage/
*In this scenario (UK property worth £219,544), Buyer A is £1,000 short of a 10% deposit, so can only secure a 95% LTV mortgage with a rate of 3.96%. Meanwhile, Buyer B has saved enough for a 10% deposit and can therefore secure a 90% LTV mortgage with a rate of 2.64%.