“I need a big deposit to buy a home” | Mortgage myth busters | HSBC UK

“I need a big deposit to buy a home” | Mortgage myth busters | HSBC UK

you're probably under the impression you need a lot of money to buy a home well it certainly helps but it's not game over if you don't have a large pot of cash the deposit is what you pay up front and it will be a percentage of the price agreed for the property generally speaking a larger deposit means you'll be able to get lower interest rates this is because it reduces your loan to value or ltv the rtb is the amount you need to borrow compared to the price of the home for example if you're buying a home that cost 100 000 pounds and you have a 20 000 pounds deposit you'll be looking to borrow 80 000 pounds meaning a loan to value of 80 simple right different lenders will require different minimum deposits so it's best to speak to your lender to see how much you'll need and what rates you can get by saving up more you could consider buying with someone else like a friend sibling partner or parent with the two of you saving you may be able to put more cash aside towards your deposits you might also be able to get a larger mortgage as you'll have two incomes to pay the bills be sure you want to do this though as you could be financially linked to that person for a long time you

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