Deposits: the first hill
Lesson 2 of 12 in our free Buying a Home guide: a 5-minute money game with the key points below.
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Questions you'll answer
A flat costs £200,000. How much is a 10% deposit?
Saving £400 a month, roughly how many months to reach £20,000 (ignoring interest)?
Quick facts
- Fact: “LTV means 'loan to value' — the mortgage as a percentage of the price.” — Lower LTV (bigger deposit) usually = lower interest rates.
- Myth: “Gifted deposits from family are never allowed.” — Many lenders accept gifts, usually with a letter confirming it isn't a loan.
- Fact: “You need cash for more than just the deposit when buying.” — Legal fees, surveys, moving costs and possibly stamp duty too.