Actual Deposit Required

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.

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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.

For "investment" property *cough*

First Active max LTV is 50% for anything which has the word "county" in the address and 70% for city addresses.

http://www.independent.ie/business/...ortgage-limit-on-rural-purchases-1452389.html

No point throwing good money after bad I suppose.

I heard on the radio a few weeks ago that some lenders are only giving 80% LTV for apartments.