A deposit is the amount of money that the buyer is expected to provide towards the purchase of a property and to secure a mortgage. The balance of the value of the property is made up by a mortgage.
Saving for a deposit is therefore one of the first steps in getting a mortgage loan. As a first time buyer you should budget to put down a minimum deposit of between 5% & 10% of the purchase price of a property. Alternatively it may sometimes be possible to secure a 100 per cent mortgage or a professional mortgage or rely on parents to provide the deposit required.
The size of the deposit you are able to make can significantly affect how much a first-time buyer will pay in interest on their mortgage.
Beyond a deposit, it is necessary for first-time buyers to have extra finance to meet other costs associated with buying a property such as stamp duty, survey fees and legal fees, as well as cover the cost of moving - see Things to consider.
As a first time buyer, finding the right mortgage can seem a little daunting but at Professional Mortgage Services we will first explain the options available and then find the best introductory offers and lowest interest rate deals for you.
At Professional Mortgage Services we will review your requirements to establish which lender is offering the best product based upon your individual needs.