1. Cheaper monthly repayments – the bigger your mortgage deposit, the smaller your loan will be. The smaller your loan is, the cheaper your monthly repayments will be.
2. Better mortgage deals – a larger deposit will also make you less risky for mortgage lenders and they’ll generally offer you lower interest rates.
3. Improved chance of being accepted – lenders calculate if you can afford the mortgage repayments. If you put down a big deposit it’s more likely you will pass as the monthly repayment will be affordable.
4. Less risk –if you own more of your home you are less likely to fall into ‘negative equity’. Being in negative equity can make moving or remortgaging very difficult.
Watch out for our “Tips for saving a deposit” blog coming soon!