Interest Only Mortgages and Remortgages

Finding out - What deposit will I need?

It is common knowldge that when applying for a mortgage you may well need to put down a deposit on the property. This deposit acts as surety to provide the lender with some security in case you do not make your mortgage payments... in essence it means they can get their money back including any expenses of repossession.

Below is a guide to deposits required for different situations and mortgage types.

Clean Credit- If you have a history of perfect credit usage you will qualify for a prime mortgage. Prime mortgages are offered at 100% of house value. It is even possible to get up to a 125% mortgage with clean credit.

Low Adverse- With a missed payment or two in the last few years but otherwisse good credit usage you will probably qualify for a 95% mortgage.

Medium Adverse- With slightly more serious credit problems, maybe status 2's etc, you will qualify for a 90% mortgage.

High Adverse- Serious credit problems in the past will probably require you to have a 15% deposit so enable you to get a 85% mortgage

Self Certification- Most self-cert deals are ona 90% basis. However, if you are a second time buyer (or more) you may be able to get a self cert with a 5% deposit.

Professional- Mortgages for professionals are offered at 110%. You don't need to be newly qualified so these can be an excellent option.

Buy To Let- Modern buy to let mortgages are generally offered at a rate around 87%

Self Build- New products on the market enable you to get a self build mortgage at 95%. That is a deposit of just 5% on the land.

Commercial- Business mortgages are generally offered at around 85%. This can be brought up to 100% if there is the additional security of your home.

The best way to find out what deposit you will require is to talk to an experienced mortgage broker. They will guide you through the process and find the right deal for your circumstances.

 

Get specific information through the headings below: