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Can I Get a Mortgage in Manchester With a 5% Deposit?

Saving for a deposit can often pose a daunting hurdle on the road to homeownership, especially for first time buyers in Manchester making their first step into the property market. The persistent upward trend of house prices over the past two decades can make the initial deposit for a mortgage seem increasingly out of reach.

Can you get a mortgage with a 5% deposit in Manchester?

Typically, mortgage lenders require a minimum down payment of around 5% of the property’s total value. For instance, for a house priced at £200,000, you’d need to have £10,000 saved for your deposit. As a mortgage broker in Manchester, we can assess your income and financial capacity to determin whether a 5% deposit is feasible or whether you need to aim for a larger amount.

Can you get a mortgage with a 5% deposit with bad credit in Manchester?

It can be achievable to secure a mortgage with a 5% deposit with bad credit in Manchester. However, it largely depends on the duration and extent of your credit issues. Usually, applicants with poor credit scores are asked to provide a higher deposit, generally in the range of 10%-15% of the property value.

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

The government launched the Help to Buy initiative back in 2013, aimed at offering a financial lifeline for those aspiring to get a foot on the property ladder. Whilst Help to Buy no longer exists, varying forms of help are available for home buyers, each with their own unique advantages. Some of the more prevalent schemes include:

Mortgage Guarantee Scheme

As a first time buyer in Manchester, this programme could aid you in securing a 95% mortgage, meaning you only need a 5% deposit. The applicability of this scheme will revolve around your economic condition and creditworthiness.

Shared Ownership Scheme

This popular scheme offers a practical and economical path to homeownership, allowing people to hold a portion of the property while renting the rest. You have the option to buy a share of the property, usually between 25% and 75%, and rent out the remaining portion. Over time, you can steadily increase your share until you take full ownership.

Lifetime ISA

This is an incentive aimed at helping first time homebuyers accumulate a deposit. Suitable for those aged between 18 and 40 contemplating buying their first house, it allows savings of up to £4,000 per year, with the government kicking in a 25% bonus (£1,000 tops) to facilitate property purchases.

Visit OwnYourHome

For a full rundown of these schemes, have a look at OwnYourHome. Alternatively, please get in touch with our team of mortgage advisors in Manchester for a chat about your possibilities. You might find that, based on your fiscal circumstances, a 5% deposit mortgage is already attainable, without the need for additional help. If you’re a first time buyer in Manchester, set up a no-obligation mortgage consultation and get the ball rolling on your purchasing journey today.

Date Last Edited: February 20, 2024

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