For those looking to buy a home in Manchester, a 10% deposit can be a practical starting point.

A 10% deposit means you’ll need a 90% loan-to-value (LTV) mortgage, which covers the remaining cost of the property.

This option is particularly popular among first time buyers in Manchester who are eager to get on the property ladder but haven’t been able to save a larger deposit.

Mortgage lenders typically offer a range of products for buyers with a 10% deposit.

Interest rates may vary based on factors like credit score, income, and the type of property you wish to buy.

Using a mortgage broker in Manchester like ourselves can be a helpful way to find competitive deals and navigate the mortgage process, especially if you are unsure which lender to choose.

Can you get a mortgage with a 10% deposit with bad credit?

Securing a mortgage in Manchester with a 10% deposit is possible, even if you have a history of bad credit.

While it can be more challenging to find a lender willing to offer a 90% LTV mortgage to those with less-than-perfect credit, there are specialist mortgage lenders who cater to such situations.

When applying with bad credit, lenders will closely examine factors like your current financial stability, the reasons behind past credit issues, and how recently those issues occurred.

Improving your credit score where possible, or demonstrating that you have taken steps to manage your finances, can help boost your application’s success.

Additionally, working with a mortgage broker in Manchester who understands bad credit mortgages can make a significant difference, as they can guide you toward lenders who may be more flexible.

Are there any ways that can help me buy a property in Manchester?

For those looking to buy a home in Manchester, several schemes can make the process more accessible, especially if you have a smaller deposit. Here are a few options that might help:

Mortgage Guarantee Scheme

This government-backed scheme aims to increase the availability of 95% LTV mortgages, which could be ideal if you have a 5% or 10% deposit.

Many lenders in Manchester participate in this scheme, making it easier for first time buyers and those with a small deposit to find a mortgage.

Shared Ownership Scheme

Shared ownership can be a good option if you cannot afford to buy a property outright. This scheme allows you to purchase a share of a home (typically between 25% and 75%) and pay rent on the remaining share.

Over time, you can choose to buy additional shares, known as “staircasing,” until you own the property outright. It’s a popular choice among first time buyers in Manchester who are looking for a more affordable entry into the housing market.

Lifetime ISA (LISA)

A Lifetime ISA can help you save for a deposit, as the government adds a 25% bonus on top of your savings, up to a maximum of £1,000 per year.

For those planning to buy their first home in Manchester, a LISA can be a valuable tool in building up the deposit needed for a mortgage.

This option is often used in combination with a 10% deposit, giving buyers more financial security when applying for a mortgage.

Each of these options can offer different benefits depending on your circumstances, so it’s worth discussing your situation with a mortgage broker in Manchester who understands the mortgage market.

We can provide tailored advice on how to combine these schemes effectively and maximise your chances of securing the right mortgage deal for your needs.

Taking the First Step with a 10% Deposit

Whether you’re buying in Manchester or any other part of the UK, having a 10% deposit can open up various mortgage opportunities.

Speaking with a mortgage broker who knows the local market can be an essential first step.

They can help you explore all the options, from understanding the different government schemes to finding competitive rates for a 90% LTV mortgage, even if you have had credit challenges in the past.

By understanding the different pathways available, you can find the right mortgage solution and make the dream of owning a home in Manchester a reality.

Date Last Edited: November 8, 2024