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The mortgage deposit

Mortgage lenders usually want you to pay a deposit towards your mortgage loan before they will accept your application. This 'deposit' is a percentage of the property's selling price and it's usually between 10 and 25 percent. But it can vary according to the type of mortgage you choose. However anything higher than 25 percent will be looked on kindly by a mortgage lender, and will help the borrower qualify for some of the cheapest deals on the market.

Most first time buyers look to raise around 10 percent of the properties’ value for a deposit, and this is known as a ‘90 percent loan to value’ mortgage. You must be aware though that the higher the loan to value the mortgage is, the more you will end up repaying in interest.

The size of the deposit varies according to the lender and type of mortgage you choose. And depending on the value of the property you want to buy, you may need a large deposit before a mortgage provider will accept you.

Taking out a mortgage can be complicated and it is important you are clear about the commitment. For more information please consult a financial adviser.

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