Why do I need a deposit?
For many people, saving for a deposit can be quite challenging, and this is their main barrier to entering the real estate market. It may seem daunting if you have a family or are currently renting.

We get a lot of questions about deposits, so we’ll try to answer as many as we can here.

To reduce your loan risk, lenders will need you to make a deposit. If they lend you 100% of the purchase price and unfortunately you fall behind on your payments, they will have to take possession of the property. These kinds of things only require a small drop in home prices for them to take a loss.

There’s a common misconception that if you haven’t invested some of your or your family’s money in your home, it may be too easy for you to “walk away” if the going gets tough and you’re struggling to meet your monthly payments. . Also, if you’re not in a position to save, say, 5% of the purchase price, it could be argued that you’re not ready to climb the property ladder.

My credit history is poor: how much do I need to put down?
Many of the specialist lenders we work with as a business want you to put down a minimum deposit of around 15% if you have a poor credit history. This is simply to reduce your risk in the event of a property repossession. If you need specialist advice, contact a mortgage advisor in Liverpool, as we are here to help.

Can I request a loan for the deposit?
It’s a possibility, but 99% of lenders won’t let you do it. This would be essentially 100% loan.

Can someone give me a deposit?
Yes, this happens quite often. Usually it is the “Mom and Dad’s Bank” that can gift the deposit, however, other family members such as aunts, uncles, etc. they have been known to do this as well. However, the latter is not such a common option, so we would not take it as a guarantee. Prove who they are and confirm that they don’t expect the gift to be refunded, then you’re good to go.

Please note that the information above is for reference purposes only and should not be viewed as personal financial or mortgage advice.