Does every bank charge higher interest on deposit req'd for house?

[11.11.18]

I'm a FTB 100% mortgage applicant and i am about to sign for a house but the bank is telling me that they will charge a higher rate of interest for the deposit which i must put down when i sign with the solicitor.....is this normal? Are they just charging me two rates of interest on the same loan??

How do i reduce the size of the deposit required for the loan? Who should i talk to - the vendor? EA? or my solicitor?

 

[eimear25]

It depends on your lender. I think BOI/ICS offer 6% on the deposit term loan - these I think are the best value.
Permanent TSB offer higher rates and so on. Someone should be able to confirm the rates. Shop around if you can. We ended up just borrowing the deposit money from parents and then paying them back once we drew down 100%.

 

[Petal]

Hi there,

It appears so. I'am just investigating this myself so I know that ICS charge 6% and PTSB charge 8.9%. I have read in other threads etc that sometimes you can negotiate a lower contract deposit (sometimes a lower percentage or otherwise a fixed sum ie 5K or so) or in some cases the vendor might agree not to take a deposit in the light of having approval for 100% mortgage. Your solicitor needs to check this out for you. I'm gonna check this out for other banks as well, I think in the end I will haggle with the bank...