How to make your deposit go further

Managing to secure a mortgage isn’t just about proving you can afford to repay it each month.

You’ll need to have at least 5% of the deposit saved up – more if you want the lowest rates.

If saving tens of thousands of pounds feels like a daunting prospect, you aren’t alone. OnTheMarket asked the Money Advice Service to share some of the ways you can boost the value of your deposit.

Apply for a Help to Buy equity loan

If you’re buying a new build home, you can apply for a Help to Buy loan of up to 20% (up to 40% in London) of the property value. The first five years are interest free, and after that you’ll be charged a fee of 1.75% of the loan’s value.

The fee then increases every year, according to the Retail Prices Index plus 1%. Fees do not count towards paying back the loan.

You don’t even need to be a first time buyer to take advantage of this scheme, but you do need to have a 5% deposit saved up, and the house you’re buying must be your only home.

Read more about paying back the loan via the UK Gov website.

Shared ownership

This scheme lets you buy part of a property and pay rent on the rest, bringing down the size of the deposit you need.

Priority is given to anyone who currently rents a council or housing association property, though each local authority will have different conditions.

Buy with someone else

It doesn’t have to be a partner or family member. Buying with friends can mean you can all save up quicker to get the required deposit. Just make sure you talk about what happens if one of you wants to sell their share.

Buy somewhere cheaper

You might find your dream location is just too expensive. If you can find a cheaper property, you’ll either be able to buy it sooner with the deposit you already have, or keep saving for a little longer to get a better mortgage deal.

Don’t forget the other costs

Even if you are able to boost the size of your deposit, don’t stop saving. You’ll need to make sure you can afford mortgage fees, Stamp Duty, moving costs and day to day maintenance of your new home.

Work out what you could pay in Stamp Duty

Find out what size mortgage you can afford


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