FAQs
A mortgage deposit is the initial sum you contribute towards the purchase of a property. The amount required typically ranges from 5% of the property value, however a larger deposit may reflect a lower interest rate being applied.
Government schemes like Help to Buy: Equity Loan and shared ownership are designed to support first-time buyers. These initiatives provide financial assistance or shared ownership options, making homeownership more accessible.
As a first-time buyer, you should budget for expenses such as solicitor fees, survey costs, stamp duty (if applicable), and mortgage arrangement fees. These fees can vary, so it is essential to factor them into your budget.
A Help to Buy ISA is a savings account designed to help first-time buyers save for a mortgage deposit. The government contributes a 25% bonus on savings up to a certain limit, providing a valuable boost towards your deposit savings.
Lenders assess your affordability based on factors such as your income, expenses, credit history, and the size of your deposit. Using a mortgage calculator or consulting with a mortgage adviser can help you understand how much you can borrow.