Borrowing For a Mortgage? Have a Deposit!
You can save up to £2,200 a year if you have a deposit of up to 40% of the property value. Those who have a lower deposit are paying up to this amount on the same loan!
According to new research released by mform.co.uk, on a 2 year tracker mortgage of £150,000, borrowers with a 40% deposit can get rates as low as 3.99%. If the borrower only has a 20% deposit, the rate rises to 5.99%.
Including all fees, this makes for a significant difference in the true cost of mortgage deals. The average cost of a 60% ltv, 2 year tracker is £20,907 compared to £24,746 for 80% ltv. That’s a difference of £1,919 year.
It’s great sign that a couple of these deals are trickling through however it’s still disappointing the options are still minimal for those with smaller deposits, especially First Time Buyers.
Read more at:
LTV Difference Causes £2000 a Year Mortgage Gap - Money Marketing
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