On this page we look at how the size of your deposit makes a difference to the interest rate payable and the monthly cost of your mortgage payments
Lenders lend in Loan To Values ( LTV ) therefore the smaller the deposit the higher the interest rate and the larger the deposit the lower the interest rate.
The following examples are based on a First Time Buyer purchasing their first property for £200,000 and shows what monthly mortgage payments would be depending on current interest rates and having a 5%, 10%, 15% or 25% deposit available.
The rates are quoted for a 2 year fixed rate mortgage with and without lenders arrangement fee on a repayment ( capital & interest ) mortgage over 35 years.
Any arrangement fee has been added to mortgage ( where applicable ) and included in mortgage payments below
| Available Deposit | Mortgage Required | Interest Rate | Mortgage payment per Month | Arrangement Fee |
|---|---|---|---|---|
| £10,000 | £190,000 | 3.35% 3.55% | £777 £790 | £999 £0 |
| £20,000 | £180,000 | 2.53% 2.85% | £650 £678 | £999 £0 |
| £30,000 | £170,000 | 2.01% 2.36% | £568 £595 | £999 £0 |
| £50,000 | £150,000 | 1.17% 1.59% | £439 £466 | £999 £0 |
The above rates are from various lenders as Manchester Mortgages are whole of market ( independent ) mortgage brokers and are subject to you meeting lenders criteria.
Mortgage rates are subject to change without notice and are based on rates available on 9 July 2021.
As you can see there are many permutations available with thousands of other rates
available over 2, 3 & 5 years or longer if required with and without arrangement fees.
Manchester Mortgages welcomes enquiries not only from First Time Buyers but Home-movers, Re-mortgagors, and Buy to Let investors.
Save yourself the stress of trying to work out which mortgage is best for you by calling Manchester Mortgages on 0161 706 0242 to discuss your requirements.
