It sounds ridiculous but just £1 can often see you get you a better mortgage deal and save £££.
It’s basic maths, but the larger your deposit, the less you need to borrow. As a result, the lender will perceive you as less of a credit risk, and in turn you’ll usually get a lower interest rate. This means that the difference between being in one banding to another will be down to the amount you have as a deposit, so just £1 can make the difference and see you saving £££ in the long run.
Lenders tend to offer the best deals to those who put down a deposit of 40% or more. That said, you can usually find good deals with a deposit of 20% to 25%, but anything less and the interest rate will rise.
If saving 25% is unrealistic, check if you’re eligible for a government help to buy scheme or similar or see if parents or grandparents are able to assist – any help you can get will make a big difference, so it’s always worth asking the question.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The fee is up to 1% but a typical fee is £650.