One of the most common mortgage myths in England is that you need a large deposit to buy a house. While having a larger down payment can help reduce the amount of the mortgage and lower monthly payments, it is not always necessary to have a large amount of cash on hand.
Many mortgage programs, such as those backed by the government, offer options for low or no down payments. For example, the Help to Buy scheme, allows buyers to purchase a new-build property with just a 5% deposit. Additionally, the Shared Ownership scheme allows first-time buyers to purchase a share of a property and pay rent on the remaining share.
It’s worth noting that having a larger down payment can help lower the amount of interest you’ll pay over the life of the loan, it can also make it easier to qualify for a mortgage. However, it’s not the only factor that lenders take into account when determining your mortgage eligibility.
In conclusion, while having a larger down payment can be beneficial, it is not always necessary to have a large amount of cash on hand to buy a house. With the various government-backed programs available, it is possible to purchase a house with a low or no down payment. It’s always advisable to consult with a mortgage advisor, who can help you understand the different options available to you.