A deposit is a lump sum you pay upfront, letting you own part of a property outright. During the purchasing process it gives the seller reassurance that you are serious about the purchase.
When agreeing a mortgage, the bigger the deposit, the better deal you are likely to get on your mortgage and the lower your monthly repayments will be.
Your deposit is the biggest thing you’ll be saving for, but having a little bit extra will come in handy for things like solicitor fees, moving costs, new furniture etc.
Depending on the type of mortgage, with The Cumberland the minimum deposit on a mortgage is currently 5% but this is subject to change.
There are situations in which the 5% mortgage offer does not apply. Mortgages for new build properties at The Cumberland are an example of this. We require a 10% deposit for properties that are within our area, and 15% deposit outside of this.
5% is the minimum amount of deposit that we require on a mortgage but that doesn’t mean that you can’t pay more. Saving additional money to put toward your deposit could get you a better interest rate on your mortgage and could also result in reduced monthly mortgage payments in the future.
Further information on mortgages at The Cumberland can be found here. If you are interested in opening a savings account to save for your deposit, the information can be found here.
To make an appointment to speak with a mortgage adviser click here.
For general enquiries please feel free to visit your local branch, or give our customer service team a call on 01228 403141 – we’re always happy to help.