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Buying a home, how much will my deposit need to be?

When you are looking to purchase a new property, one of the first things you will need to know is how much money you will need.

In this article, we will discuss how much you can expect to pay as a deposit when buying a home in the UK.

In recent years lenders have demanded that homebuyers need a 10% deposit when taking out a mortgage to buy a property.

This means that if you’re looking to buy a home worth £200,000, you would need to have at least £20,000 saved up for your deposit.

This is a huge amount of money for many people and with house prices rising the amounts required to get onto the property ladder are set to become even higher. That’s is why in April 2021 the government gave homebuyers a bit of a lifeline with its scheme giving first-time buyers access to 95% mortgages.

The government-backed scheme is available through a number of different lenders and can make buying your first home much more achievable.

To put this in context, if you were looking to buy a £200,000 home, you would only need a deposit of £10,000.

Other Government schemes aimed to assist buyers are available including:

The help to buy scheme

Help to buy is a scheme that can help you buy a new home with a low rate equity loan from the Government.

The Shared Ownership scheme

Shared ownership is another option that could see you owning a share of your home (between 25% and 75%) and paying rent on the rest.

The first homes scheme

The first home scheme offers a discount of up to 30% for key workers such as NHS staff and teachers.

So, there are plenty of options available to help you get on the property ladder. Just be sure to do your research and speak to a mortgage advisor to find out which one is right for you.

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