Ever wondered how much is enough?
With the new mortgage rules now in effect, prospective applicants will need to have a deposit. But what is the lowest mortgage deposit that is needed for approval? Well, the amount is a percentage of the property’s value. This percentage changes depending on the type of mortgage sought. For example, a First Time Buyer would need to have a deposit of 10% for homes worth up to €220,000.
Properties in excess of €220,000 are subject to an additional deposit of 20% on the amount over €220,000. Let’s demonstrate this with a simple example, shall we? Mr. X is applying to get a mortgage for a house worth €250,000. Taking into consideration what we’ve just discussed above, Mr. X would have to put together a deposit of 10% of the first €220,000 (€22,000) and 20% of the remaining €30,000 (€6000).
This would mean that Mr. X would need to have a minimum deposit of €28,000. However, larger deposits are needed for other types of mortgages. So we’ve put together a table below which shows the deposit percentages needed for all the other mortgage products that we offer:
|Mortgage Type||Property Value||Minimum Deposit Needed (%)|
|First Time Buyer||€220,000 or less||10%|
|First Time Buyer||€220,000 +||10% of €220,000 plus 20% of the balance over €220,000|
|First Time Self Build||€220,000 or less||10%|
|First Time Self Build||€220,000 +||10% of €220,000 plus 20% of the balance over €220,000|
|Trading Up Mortgage||Any Value||20%|
|Non First Time Self Build||Any Value||20%|
|Remortgage with Negative Equity||Any Value||At lender’s discretion|
|Buy To Let Mortgage||Any Value||25%|
|Non Resident (Expat Mortgage)||Any Value||35%|