Sizeable deposit still an important step for mortgage applicants, says Money.co.uk

Date:Thursday 9th September 2010
Author: Max Freedman

Money.co.uk has told potential mortgage applicants that many lenders are still looking for customers to have significant deposits set aside.

Chris Morling, managing director of the website, made his remarks after the organisation published research showing 21 per cent of people spent more than they budgeted for when purchasing a property.

He suggested putting enough money aside for a large deposit is a vital part of buying a house, but stressed that preparations do not end there.

"As our research demonstrates, it is also very important to have a clear picture of all the costs involved, rather than just looking at the purchase price," added Mr Morling.

The report by Money.co.uk indicated that individuals who spent more than they planned to ended up shelling out an extra £23,000 on average.

This week, HSBC announced that it has launched a pair of new mortgage deals aimed at first-time buyers, with the arrangements requiring a ten per cent deposit.