While 10% deposit is generally considered the standard rate banks will grant a mortgage, many mortgage providers will offer you a loan based on a deposit as small a 5% of the property’s value, which is also known as LTV (loan-to-value). With a £10,000 deposit, this means that you could be looking to purchase a property that’s worth up to £200,000.
That said, there are a few schemes that could help you buy a property with a smaller LTV deposit below 5%, which we’ll look at in more detail later on.
As of today in 2024, the average house price in the UK is £282,000, so 5% of that would be £14,100 taking you slightly over your £10k limit, but of course, this is just an average figure and includes all types of houses across the whole of the UK, so for you specifically, that figure will vary massively depending on what kind of house you’re looking for and where it’s located.
Let’s say, for example you’re looking to purchase a 2-bed terraced house in North West England, which currently sits at an average of £166,721. 5% of that is £8,336, which also leaves a little left over. Happy days!
But, what if you want to set your sights on something bigger with a higher price tag, is there any help out there for you to secure your dream home? The good news is yes, there is…