Five Questions About: Small deposit mortgages

 

What's the most I can borrow?

Most banks and building societies (around three-quarters of the market) offer mortgages of up to 90 per cent of the cost of the property. Only 14 UK lenders still offer mortgages to borrowers with just a 5 per cent deposit. Most of these are building societies.

Will my rate be higher if I only have a small deposit?

Yes. The average rate for a 95 per cent loan-to-value mortgage deal is 5.67 per cent, while at 90 per cent it's 5.28 per cent. But, if you put down a 25 per cent deposit, the average rate plummets to 3.69 per cent. Shop around for the best deal.

What are the best low-deposit mortgages?

If you have a 10 per cent deposit, HSBC offers a two-year discount deal at 3.84 per cent with no fee. For those with a 5 per cent deposit, Market Harborough has a 3.99 per cent discount for the term of the mortgage, which comes with a £95 fee and 2 per cent early repayment charges for the first two years. However, a family member is required to invest another 20 per cent of the purchase price with the building society for five years.

How long will my mortgage take to process?

So long as you don't encounter problems, your loan should be processed in around two to three weeks.

What's the hurry?

The 0 per cent stamp duty concession for first-time buyers on homes costing up to £250,000 expires on 24 March. First-timers completing on a sale after this date will need to pay 1 per cent on homes costing between £125,000 and £250,000. This means missing out on a saving of up to £2,500.

This information is provided by Moneysupermarket.com in good faith: neither that company nor The Independent can be responsible for its accuracy. It should not be relied upon in any investment decision, for which you should consider professional advice. The price of investments can go up as well as down and past performance cannot be relied upon as a guide to future performance.

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Payments Operations Assistant

    £23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

    Recruitment Genius: Telephone Debt Negotiator

    £13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

    Guru Careers: Communications Exec / PR Exec

    £25 - £30K: Guru Careers: We are seeking a highly-motivated and ambitious Comm...

    Guru Careers: Pricing Analyst

    £30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

    Day In a Page

    On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

    On your feet!

    Spending half the day standing 'reduces risk of heart attacks and cancer'
    Liverpool close in on Milner signing

    Liverpool close in on Milner signing

    Reds baulk at Christian Benteke £32.5m release clause
    With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

    The big NHS question

    Why are there so few new GPs when so many want to study medicine?
    Big knickers are back: Thongs ain't what they used to be

    Thongs ain't what they used to be

    Big knickers are back
    Thurston Moore interview

    Thurston Moore interview

    On living in London, Sonic Youth and musical memoirs
    In full bloom

    In full bloom

    Floral print womenswear
    From leading man to Elephant Man, Bradley Cooper is terrific

    From leading man to Elephant Man

    Bradley Cooper is terrific
    In this the person to restore our trust in the banks?

    In this the person to restore our trust in the banks?

    Dame Colette Bowe - interview
    When do the creative juices dry up?

    When do the creative juices dry up?

    David Lodge thinks he knows
    The 'Cher moment' happening across fashion just now

    Fashion's Cher moment

    Ageing beauty will always be more classy than all that booty
    Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

    Health fears over school cancer jab

    Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
    Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

    'I forgive everyone, but I don't forget'

    Fifa president Sepp Blatter issues defiant warning to opponents
    Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

    Weather warning

    Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
    LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

    High hopes for LSD

    Meet the volunteer users helping to see if it cures depression and addiction
    German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

    Saving Private Brandt

    A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral