Taking your first steps onto the property ladder can feel daunting — especially with so much (often conflicting) information out there. That’s why we’ve compiled answers to three of the most common questions we receive from first-time buyers.
- How Much Deposit Do I Really Need as a First-Time Buyer?
Many believe that saving a large deposit is the only way to get a mortgage, but that’s not the case. There are a growing number of lenders now offering mortgages with just a 5% deposit, making homeownership more accessible than ever.
That said, a 10% deposit remains the most widely accepted level among high street lenders and could give you access to a broader range of mortgage products with more competitive interest rates.
In short: the bigger the deposit, the more options you’ll have, but it’s absolutely possible to buy with less.
- Can I Buy a Property with Bad Credit?
Yes, and we help more people with bad credit than you might think.
Many mortgage lenders are willing to support first-time buyers with a history of bad credit, including missed payments, defaults, and even more serious financial issues.
The key is that different lenders have different rules about what they’ll accept and how recent the credit issues occurred. For example, some may accept applicants who have had, Payday loans, County Court Judgements (CCJs) or Individual Voluntary Arrangements (IVAs)
- Can I Use a Gifted Deposit?
Yes. All or part of your deposit can be gifted by a family member. If you’re using a gifted deposit, you’ll need to let us know when submitting your mortgage application.
The person gifting the money must be at least 18 years old, not live in the property you’re purchasing, and will be required to sign a gifted deposit declaration confirming the funds are a gift and not a loan.
Gifted deposits are a common way for first-time buyers to get onto the property ladder, and our team is here to guide you through the process.
Book a Call with Our Team
Contact us today to discuss how we can assist you on 0208 364 3444 or click here to schedule a free consultation call.