1.How much deposit do I need?
Having a strong deposit is a good way to increase your chances of being accepted for a mortgage. Unless you are using Help to Buy, you will usually need to have saved up at least 10% of your home’s value before you can make an application.
The amount you need to save will depend on a number of factors, with the main one being the price of the home you want to buy. Take a look at our mortgage calculator to see for yourself how the size of your deposit can affect how much you’re paying for your mortgage each month.
2.What is a deposit calculator?
Whether you’re just starting to build your deposit, or you’ve already got money set aside, using a deposit calculator can help you see how much further you’ve got to go.
It can be useful to see all the figures relating to your mortgage in one place – which is what a deposit calculator enables you to do. The calculator can give you an idea of what your mortgage repayments will be, based on various factors such as the term of your loan and its interest rate.
3.What is the Help to Buy scheme?
With the Help to Buy scheme, you will only need a 5% deposit to secure your new home.
The government will lend you up to 20% of the value of your new home, meaning you will only need a 75% mortgage. You won’t be charged any fees over the first five years of your loan, so you can use this time to save more for the future.
4.Do I need a mortgage in principle?
When you are buying a brand new home, it might take longer than six months for it to be completed. If this is the case, it can be a good idea to apply for a mortgage in principle.
However, even if you are given a mortgage in principle, it doesn’t guarantee your mortgage will be approved when you make your formal application. Your lender will look at your financial situation in more detail and make their decision based on the latest information they have.
5.What is a mortgage in principle?
Some people apply for a mortgage in principle before buying a new home. This is when a lender will say that, if all your financial and personal information is accurate, they would be willing to lend you the money you need to buy a new home.
A mortgage in principle can be reassuring, especially if your new home might not be completed for several months. A formal mortgage offer might have expired by the time your home is ready.
A mortgage in principle can usually be drawn up in 24 hours and will generally last between three and six months. You will need to check with your lender exactly how long yours will be valid for.