Actual Deposit Required

N

Now_and_Then

Guest
I know that most banks/building societies say they are looking for mortgage deposits of a minimum of 8% . Hoverer I have been hearing that their reluctance to lend means that some are looking for maybe 25%.

I know individual circumstances vary and so will the deposits required but does anyone have any idea what banks are actually looking for? Are they willing to accept 8% in most cases?

I'm a non-first time buyer who doesn't want to sink all my available cash into the mortgage.
 
It's the developer/seller who looks for a deposit - usually c. 10% but the lender may restrict lending to a particular LTV (Loan To Value) ratio. In recent years some people were getting 100% loans but these days many lenders will only advance say c. 90% or even less.
 
ClubMan said:
It's the developer/seller who looks for a deposit - usually c. 10% but the lender may restrict lending to a particular LTV (Loan To Value) ratio. In recent years some people were getting 100% loans but these days many lenders will only advance say c. 90% or even less.
Click to expand...

I was told 92% was the norm but if i cant make it they could stretch to 93, 94, 94.5% etc.
 
It depends on the lender and the circumstances of the borrower. But many lenders are being a lot more conservative than in recent years when it comes to assessing loan applications and deciding how much they might advance.
 
Thanks for the answers.

The reason I am asking this question is that increasingly I am reading in the paper about LTVs offered slipping . Yesterday in The Irish Times Dennis O'Brien was talking about LTVs of 70% and today, in the same paper, Morgan Kelly is talking of LTVs of 80%.

I suppose the simplest thing for me to do is to go and ask the banks etc, I just wanted to see in advance whether other people's experience was matching the media reports.
 
In my experience, mortgages of >92% are becoming increasingly rare at present. I'm aware of only one who's offering >92% and that's only to First Time Buyers who are from a certain group of professions, e.g. doctors, solicitors etc.

Most lenders will still offer 92% to First Time Buyers buying houses. Many reduce the offered percentage for apartments. Some have restrictions on other classes of mortgage, e.g. ICS will only offer 50% to those who are switching, IIB will only offer 80% for re-mortgages.
 
You must log in or register to reply here.
Back
Top