Most people believe that buying a home usually requires a significant deposit upfront. This may discourage first time buyers, as they may think they cannot afford to buy a home. However, the reality is that the amount of money required for a deposit can be affordable because lenders can offer much higher loan to value ratios (LVR).


A loan to value ratio is essentially the amount of the value of the property that the lender is willing to lend. The higher the loan to value ratio, the lower the deposit.  

While the standard deposit is usually 10-15% of the property value, higher LVRS are available. An increasing number of lenders will allow a 5% deposit on home purchases making a LVR of up to 95% of the property value. Although the standard term is usually 20 years, mortgages can be arranged for longer or shorter periods. These factors can make the entry point to home ownership more accessible. 

For instance, a 5% deposit on a £150,000 home would be £7,500, which although a significant sum, is likely to be more affordable for many. This deposit flexibility allows buyers to explore different mortgage terms that closely match their financial situation. Home ownership is not just for those who can put down a large deposit.

If you have any questions on arranging finance for buying a home, including deposits, loan to value rations or general mortgage advice, fill out the form below, and a member of our financial services team will be in touch to arrange an appointment.

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