You will need to provide a deposit – the more attractive mortgage deals can be obtained with larger deposits.
Normally you need to save a deposit of at least 5% of the cost of your home. Home buyers who put down a 15% deposit can find some great deals. Anyone who has 25% will get the lowest possible rates of interest.
Few first time buyers can afford as much as this, so the government has introduced a temporary scheme for struggling buyers called Help to Buy. Our expert mortgage advisers know about all the deals available for buyers so ask us about it.
Your deposit will be paid at exchange of contracts, although you will probably need to prove that you have these funds at the outset, to show the mortgage lender you are not borrowing the money from elsewhere and therefore increasing your outgoings. When considering the level of deposit, you should bear in mind the other costs associated with buying a property, such as valuation costs, solicitor’s fees and potentially stamp duty.