How much deposit do you need as a First Time Buyer?

By 28th February 2020March 12th, 2020Blogs

Buying your first home can be a daunting prospect. It can be difficult to know how to start this process and what you need to do to get yourself on the property ladder. One of these concerns revolves around the deposit that is needed as a first-time buyer. Below we share how much deposit you will need as a first-time buyer and how a mortgage broker can help you.

How much deposit will you need?

Most lenders will demand a minimum deposit of 5 per cent of the property’s value if you are a first-time buyer. This is commonly known as the 95 per cent mortgage, as the lender will loan you the remaining 95 per cent. However, even though the deposit is small, it does place limitations on your choice of mortgage deal and there may well be better deals for you. So, the advice here is to simply not go for the lowest interest rate option.

Save for a bigger deposit

As a first-time buyer, the deposit you put down will depend on how much you have saved and what help you can get from your family. Obviously the bigger the deposit, the lower the loan will be and you’ll have a greater range of mortgage rates and repayment schedules available to you.

How a mortgage broker can help

A mortgage broker is a professional who has access to a wide range of mortgage deals and who can help first-time buyers to get the very best mortgage deal.

So, why use a mortgage broker?

The main reason is that they can help you to save money and to find a mortgage deal that suits your finances and personal circumstances. They can also help you to find a mortgage deal that allows you to put down the deposit that is right for you.

If you are a first-time buyer in Preston then we can help you. As a team of mortgage brokers, we can assist you in getting the best mortgage deal for your personal circumstances, as we have full access to a range of different mortgages and deposit options. To learn more about how we can help you, then please do get in touch with us today.