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What is the lowest mortgage deposit needed for approval?

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    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:

    <table> <tbody> <tr> <td><strong>Mortgage Type</strong></td> <td><strong>Property Value</strong></td> <td><strong>Minimum Deposit Needed (%)</strong></td> </tr> <tr> <td>First Time Buyer</td> <td>€220,000 or less</td> <td>10%</td> </tr> <tr> <td>First Time Buyer</td> <td>€220,000 +</td> <td>10% of €220,000 plus 20% of the balance over €220,000 </td> </tr> <tr> <td>First Time Self Build</td> <td>€220,000 or less</td> <td>10%</td> </tr> <tr> <td>First Time Self Build</td> <td>€220,000 +</td> <td>10% of €220,000 plus 20% of the balance over €220,000 </td> </tr> <tr> <td>Trading Up Mortgage</td> <td>Any Value</td> <td>20%</td> </tr> <tr> <td>Non First Time Self Build</td> <td>Any Value</td> <td>20%</td> </tr> <tr> <td>Remortgage with Negative Equity</td> <td>Any Value</td> <td>At lender’s discretion</td> </tr> <tr> <td>Buy To Let Mortgage</td> <td>Any Value</td> <td>25%</td> </tr> <tr> <td>Non Resident (Expat Mortgage)</td> <td>Any Value</td> <td>35%</td> </tr> </tbody> </table>

    Paul Quinlan

    Paul Quinlan

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    Last updated: 11th November 2016