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