50% Deposit Mortgage
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50% Deposit Mortgage
What is a 50% Loan to Value mortgage?
It’s a mortgage where you are putting a 50% deposit down, so the Loan to Value of the mortgage is 50%.
Who can get a 50% deposit mortgage?
Anyone who fits the lender’s criteria around income and credit score – that should be fine.
What are the eligibility requirements for a 50% deposit? Is it easier to get a mortgage with a larger deposit?
If your credit isn’t perfect, it is easier to get a mortgage with a deposit of 25% or more, as it’s less risky for the lenders.
To be eligible, you just need to fit the requirements on affordability and meet the lender’s risk appetite.
How is a 50% Loan to Value mortgage repaid?
The same way as other mortgages. With a capital repayment mortgage, which is the standard, you are paying the capital and the interest off all the way through. That means you will have a debt free asset at the end of the term.
The alternative is interest only, where you only pay the interest. At the end, you are still left with the same loan amount to repay.
Can I apply for a mortgage with a 50% deposit if I have bad credit? Can I get a mortgage with a very poor credit score?
Yes, it is possible, and it’s easier with a lower Loan to Value. We can try, but it depends on how bad things are or have been. We would look at your whole situation in more detail to check what the likelihood of this is for you.
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Buying a new home can be a stressful time for anyone. Our job here at Brick2Brick Mortgage Solutions is to make the process a lot easier, taking the stress out and making the clients journey smooth and so much more.
What are the advantages and disadvantages of a 50% mortgage?
There aren’t really any disadvantages, as you’re in the best Loan to Value category with the least risk. Anything below 60% means you can generally get the best rates on the market.
Lenders are a lot more favourable to people with bigger deposits.
How do I apply for a mortgage with a 50% deposit? What is the process here?
It’s the same as with a lower deposit. You come to us initially and find out what the maximum borrowing potential is. You find a property, get your offer accepted, and then we will obtain the most cost effective deal available for you.
If you’re happy, we’ll put in the formal application for you, guiding you through the process and keeping you updated until the day you move in.
How can a mortgage broker help with a 50% deposit mortgage?
Just the same way. We help you every step of the way – from finding how much you can borrow until the day you move in. We’ll just hold your hand all the way through until that happens.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
Useful Links
- First Time Buyers
- Agreement in Principle
- First Time Buyer Joint Mortgage
- Self-Employed Mortgage First Time Buyer
- First Time Buyer New Build Mortgage
- Joint Borrower Sole Proprietor
- Gifted Deposit Mortgage
- How much deposit do you need for a mortgage?
- Shared Ownership Mortgage
- Do I Need a Guarantor?
- What options do I have if I have a low deposit?
- Interest-Only Mortgage for First Time Buyer
- First Time Buyer Self-Build Mortgage
