Saving for your mortgage deposit can feel like an uphill climb when you’re looking for a property in Leeds. Over the past couple of decades, escalating property prices have made the prospect of gathering a deposit seem even more daunting.
If you’re new to the property market in Leeds, our insightful guide may help tick off several queries about acquiring a mortgage with a small 5% deposit.
Can I get a mortgage with a 5% deposit in Leeds?
More often than not, mortgage providers typically require an initial deposit of roughly 5% of the overall property value. For instance, if you have set your sights on a home worth £200,000, you’ll need to set aside a deposit of £10,000.
As a mortgage broker in Leeds, we assess your earnings and financial condition to ascertain whether a 5% deposit is within your reach or whether you need to aim a little higher.
Can you get a mortgage with a 5% deposit with bad credit in Leeds?
In certain circumstances, securing a mortgage with a 5% deposit with a less-than-perfect credit score may be possible.
However, the level of difficulty and the timeline of your credit issues largely determine the feasibility.
Typically, applicants with a bad credit history are requested to provide a larger deposit, usually around 10%-15% of the property’s value.
Are there any ways that can help me buy a property in Leeds?
There are several schemes designed to assist homebuyers up the property ladder. If you are in Leeds and struggling to gather a deposit, these programs might be the boost you need:
Mortgage Guarantee Scheme – This scheme is the perfect fit if you are a first time buyer in Leeds. Its purpose is to help you secure a 95% mortgage, thereby reducing your deposit requirement to just 5%. Eligibility relies heavily on your financial standing and credit history.
Shared Ownership Scheme – The Shared Ownership Scheme in Leeds gives you allows you to own a percentage of a property (typically between 25%-75%). The way that this works is that you take out a mortgage on the percentage that you own, then pay rent on the remaining share to the other property owner. This could be a building society, landlord, etc.
As circumstances change, you can slowly increase your share until, eventually, you own a sizeable chunk, if not all, of the property.
Lifetime ISA – This is an initiative aimed at helping first time buyers build up their mortgage deposit. The scheme is only accessible if you are a first time buyer in Leeds aged between 18-40.
The Lifetime ISA effectively is a savings account where you can accumulate up to £4,000 annually. The government then boosts whatever amount you save by an additional 25% (max £1000).
For more information on these mortgage schemes and to see what else the government offers, visit OwnYourHome.gov.uk.
Get in Touch with a Mortgage Advisor in Leeds
We invite you to book your free mortgage appointment with a mortgage advisor in Leeds. Every customer can benefit from a free mortgage appointment where you will get the chance to discuss your homeownership aspirations and ask any questions that you have.
Depending on your unique financial circumstance, obtaining a mortgage with a 5% deposit could be achievable without the use of a mortgage scheme. During your free mortgage appointment, we will take a look at your situation and work out whether this is something that you can do.
If you’re a first time buyer in Leeds, schedule your free mortgage consultation with us today and embark on your journey towards homeownership.
Date Last Edited: June 26, 2024
