Your Deposit & everything you need to know…
The deposit your put down on your new property is one of the biggest factors in buying a home. It has an influence on when you’ll be ready to start making offers, on how much you can borrow, and the lenders you choose.
However, the headlines make your deposit seem like one mean feat, with figures in the headline of 30k and 40k deposits to take your first step on the property ladder, it’s easy to feel like quitting before you’ve even started.
Yes, some first time buyers may need a larger deposit, however a deposit half this size can still mean your dream home is still a reality.
Want to get off to the best start? Here’s our top tips…
- Take time to consider what you’re looking for in your home, and the budget your planning for, there are many influences in this, such as how much lenders are willing to lend you, however understanding your own dream home and how much this is going to cost, will give you a good idea of the deposit you need.
- Save, Save, Save. Saving more than you think you need, is of course never a bad thing, and larger deposits can mean lower monthly mortgage payments.
- Don’t be put off by the headlines, talk to us about your plans, and we can advise you, based on your financial background and future plans what it is you’re most likely going to need to secure your first home.
- Consider your LTV ratio, this is your “Loan to value ratio” are you borrowing, 70, 80 or 90% of your properties value, the lower the percentage the better of course, however securing your own on a larger Loan to value isn’t impossible, and isn’t rare.
Want to know more about your options and your deposit? Get in touch with the team today!