A mortgage deposit is an initial payment that is put down by a home buyer when they take out a mortgage. It represents part of the price of the property, with the remainder coming from the lender.
The mortgage deposit usually ranges from 5% to 25% of the total purchase price of the property. For example, if a buyer is looking to purchase a property for £200,000, they would need to put down a mortgage deposit of at least £10,000.
Mortgage deposits can be a significant amount of money, so it is important to make sure that you have enough saved up before you apply for a mortgage.
Different lenders have their own views on the minimum deposit they will require for a type of mortgage. These will change according to the level of risk or type of borrower the lender wishes to attract.
Our Guide to Mortgage Deposits explains this topic further.
What’s the difference between a mortgage deposit and an exchange deposit?
