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?
SPONSORED FEATURES
Independent Dating
and  

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

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Mortgage Administrator

    £20000 - £25000 per annum: Recruitment Genius: We are a vibrant and establishe...

    Recruitment Genius: Payments Advisor

    £15000 - £20000 per annum: Recruitment Genius: An experienced Repayments Advis...

    Recruitment Genius: Investment Analyst

    £25000 - £30000 per annum: Recruitment Genius: This leading provider of financ...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + competitive: SThree: Are you looking to take your ...

    Day In a Page

    A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

    Britain's Atlantis

    Scientific study beneath North Sea could revolutionise how we see the past
    The Queen has 'done and said nothing that anybody will remember,' says Starkey

    The Queen has 'done and said nothing that anybody will remember'

    David Starkey's assessment
    Oliver Sacks said his life has been 'an enormous privilege and adventure'

    'An enormous privilege and adventure'

    Oliver Sacks writing about his life
    'Gibraltar is British, and it is going to stay British forever'

    'Gibraltar is British, and it is going to stay British forever'

    The Rock's Chief Minister hits back at Spanish government's 'lies'
    Britain is still addicted to 'dirty coal'

    Britain still addicted to 'dirty' coal

    Biggest energy suppliers are more dependent on fossil fuel than a decade ago
    Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

    Orthorexia nervosa

    How becoming obsessed with healthy eating can lead to malnutrition
    Lady Chatterley is not obscene, says TV director

    Lady Chatterley’s Lover

    Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
    Farmers in tropical forests are training ants to kill off bigger pests

    Set a pest to catch a pest

    Farmers in tropical forests are training ants to kill off bigger pests
    Mexico: A culture that celebrates darkness as an essential part of life

    The dark side of Mexico

    A culture that celebrates darkness as an essential part of life
    Being sexually assaulted was not your fault, Chrissie Hynde. Don't tell other victims it was theirs

    Being sexually assaulted was not your fault, Chrissie Hynde

    Please don't tell other victims it was theirs
    A nap a day could save your life - and here's why

    A nap a day could save your life

    A midday nap is 'associated with reduced blood pressure'
    If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

    If men are so obsessed by sex...

    ...why do they clam up when confronted with the grisly realities?
    The comedy titans of Avalon on their attempt to save BBC3

    Jon Thoday and Richard Allen-Turner

    The comedy titans of Avalon on their attempt to save BBC3
    The bathing machine is back... but with a difference

    Rolling in the deep

    The bathing machine is back but with a difference
    Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

    Conservatives plot a motoring revolution

    Draft report reveals biggest reform to regulations since driving test introduced in 1935