How Much place Do I Need To Buy A House in Liverpool?
Why do I need a place?
For many people, saving up for a place can be rather challenging, and this is their dominant obstacle to entry into the character market. It can be seen as daunting if you have a family or are currently renting.
We do get many questions about deposits so we’ll try to answer as many as I can for you here.
To reduce their lending risk, lenders will need you to put down a place. If they lend you 100% of the buy price and you unfortunately fall into arrears, they’ll need to take possession of the character. This sort of thing only takes a small dip in house prices for them to suffer a loss.
There is a shared thought that if you haven’t invested some of yours or your family’s money into your home then you might find it a bit too easy to “walk away” should the going got tough and you were struggling to meet your monthly payments. Also, if you are not in a position to save up say, 5% of the buy price yourself then it could be argued that you’re not quite ready to get onto the character ladder.
My Credit History is Poor – How Much I Need to put Down?
A lot of the specialist Lenders that we work with as a company want you to put down a minimum of around 15% place if you have a poor credit history. This is simply to reduce their risk in the event of a character repossession. If you do require specialist advice, then please get in touch with a Mortgage Advisor in Liverpool as we are here to help.
Can I Take out a Loan for the place?
It’s a possibility, but 99% of Lenders won’t let you do this. This would essentially be 100% lending.
Can someone Gift me a place?
Yes, this happens quite frequently. It’s usually the “Bank of Mum and Dad” that can gift the place, however other family members like Aunties, Uncles etc. have been known to do this too. The latter isn’t as shared an option though, so we wouldn’t take this as a guarantee. Prove who they are and confirm they are not expecting repayment of the gift, then you’re good to go.
Please observe that the above information is for reference purposes only and is not to be viewed as personal financial or mortgage advice.