Property Buying Guide

Building a Deposit

A deposit is the amount of money that you will be required to provide towards the purchase of a property, with the balance made up from mortgage finance. Building a deposit isn't easy these days!

A house deposit is something you should save for and gather before you start thinking about which property you want to buy. Having said that, if this is a real problem there are other options featured in our guide to building a deposit where you can buy a first home without saving for a deposit at all, also gifted deposit.

The size of your house deposit may affect the interest rate you pay for some mortgage packages - the more you put down as a mortgage deposit, the lower the rate of interest you may be charged.

To find out what sort of deposit you might be required to get together - find out how much you can borrow - take mortgage advice.

A typical deposit would be 5 -10 per cent of the price of the property. So, for instance, if you were required to provide a 10 per cent deposit and the purchase price was £150,000 you would need to put down a £15,000 deposit. A very large mortgage – 100% or more of the property value would attract additional higher lending charges. These days, many parents make gifts to boost the size of the mortgage deposit.  We cover that in more depth in our 'How Parents can Help' section.

One initiative that other housebuilders might like to copy is the 'Save to Buy' type scheme, which involves buyers saving up to 5% of the deposit over 18 months; an amount which is matched pound for pound by the builder. This eventually enables the buyer to accrue the 10% deposit required to purchse the house.

Useful Websites:
www.spectrum-manchester.com - save to buy scheme

Find out more about how to build a deposit - or even get away without needing one see our guide:

Savings , Extra work, selling things, cutting down on spending, cutting down on debt , Gifted Deposits , A loan , Investing Abroad , Reducing the size of mortgage deposit needed , No Deposit Options

Most useful and most popular pages on this site:

Look for your First Property l Seek First Time Buyer Mortgage Advice l See our Best First Mortgages Comparison Table l Find out about First Time Buyer Mortgages l Find out How to Buy a House l Learn all about The First Time Buyer Mortgage l Shared Ownership

If you're looking for a short cut to your first home, we recommend you look closely at the following three options.
 
1   Consult a mortgage advisor to see if you can afford it on your own.

2   See if there are any new-build bargains in your area

3    If you still can't afford what you want, speak to your parents about how they can help and revisit the above options with their input taken into consideration.