Paying deposit

[xb_deai]

Hi I am buying an affordable house and will be getting 100% mortgage. However I have to pay council 3% deposit to council. Do I get this back ? or how does it work?​

 

[LDFerguson]

You'll get it back out of the proceeds of your 100% mortgage. Or you could just borrow 97% which would work out cheaper for you in the long run.

 

[xb_deai]

I know it seems crazy to borrow 100% when I could afford 97% but I want to get some basics for the house and keep some money aside "just in case". I probably would not be able to get a bank loan for a while as 35% of my net income will be going on mortgage so as single mom would feel better with some cash on deposit.