A deposit is one of the most essential parts of your mortgage journey, as it directly impacts the types of mortgage deals available to you and affects the size of your monthly repayments. Here’s what you need to know about your deposit and how we at Equinox Mortgages can guide you through the process.

​

How Small Can a Deposit Be?

​

You might be surprised to know that deposits can start from as little as 5% of the property’s purchase price (and in some cases less!). While a higher deposit generally gives you access to better mortgage rates, many lenders are willing to consider smaller deposits, making home ownership more accessible.

​

At Equinox, we’ll help you understand the deposit requirements specific to your goals, whether that’s starting with a smaller deposit or saving up a bit more to access the best possible rates.

​

The Benefits of a Larger Deposit

​

While a smaller deposit can help you get on the property ladder sooner, a larger deposit comes with some clear benefits:

• Better Interest Rates: A larger deposit reduces the risk for lenders, making you eligible for lower interest rates.

• Lower Monthly Payments: With a smaller loan, your monthly payments will generally be more affordable.

• More Options: Many lenders offer a wider range of mortgage products for those with higher deposits, giving you more flexibility and choice.

Josh can review your unique situation to help determine the optimal deposit size for you, balancing your current savings with the benefits of a larger deposit.

​

Where Can Your Deposit Come From?

​

There are several sources you can use for your deposit, and understanding these options can be crucial to reaching your homeownership goal. Here are a few possibilities:

• Personal Savings: Savings you’ve accumulated are often the primary source for a deposit.

• Gifted Deposits: Many first-time buyers receive financial help from family members in the form of a “gifted deposit.” This is a common approach, but it’s important to document the source for lender approval.

• Government Schemes: Various government schemes, such as Help to Buy or shared ownership options, may allow you to put down a smaller deposit. Josh can help you explore these schemes if they fit your circumstances.

• Equity from Existing Property: If you’re a current homeowner, you might use the equity in your existing property as a deposit for your next home.

​

When Is the Deposit Payable?

​

The deposit becomes due at exchange of contracts—the legal stage where you and the seller commit to completing the purchase. At this point, you’ll need the full deposit amount available. With the right preparation and guidance from Equinox Mortgages, we’ll make sure you’re ready and informed every step of the way.

​

How We Can Help

​

At Equinox Mortgages, we understand that saving for a deposit can be a challenge, and we’re here to help you find the best approach to reach your goals. Whether you’re starting with a small deposit, considering a larger one, or need advice on sourcing your deposit, Josh, our experienced advisor, will guide you through all your options.

Your journey towards homeownership is unique, and we’ll tailor our guidance to suit your needs, helping you unlock the most suitable mortgage options based on your deposit and overall financial profile.

​