How much will I need for a deposit and other costs?
We will only lend you a percentage of what the property is worth, so you will need to put down some of your own money towards the cost. We call this a deposit. Your deposit should be at least 5% of the property’s value. If you can put down more than 5%, you can often get a lower initial interest rate.
If you’re planning to put down a deposit between 5% and 15%, to qualify you’ll need to be:
- a first-time buyer
- thinking about borrowing less than £500,000.
- buying a property which isn’t a new build
- buying a property which isn’t Shared Ownership, Shared Equity, Right to Buy or buy to let
- thinking about getting a repayment mortgage and not interest only.
Lending is subject to an affordability assessment, credit score and a full mortgage application.
We’re supporting the Government’s mortgage guarantee scheme, if you only have a deposit of at least 5% but less than 10%. The scheme is expected to accept applications until 31 December 2022, however, it may be withdrawn earlier. You can apply for a mortgage under the scheme by following our usual application process.
You must be at least 18 years old to apply for a mortgage, and your mortgage must usually end before you reach 80 years of age. If your mortgage term extends past your 70th birthday or when you plan to retire - whichever happens sooner - we'll look at your retirement or employment income to make sure that you can afford the monthly payments. If you’re taking out a joint mortgage, we take the age of the oldest person into account.
As well as your deposit, there are other costs associated with buying a property and taking out a mortgage. Typical ones that apply to most buyers include conveyancing fees, Stamp Duty Land Tax/Land and Buildings Transaction Tax (properties in Scotland), valuation fees and Land Registry fees. There are often unexpected costs too in buying a property, so it's a good idea to have a reserve fund to cover them.
Halifax supports a range of government backed initiatives to help customers to buy their home.
Use the Halifax mortgage calculator to see how much you could borrow and what your monthly payments might be. Or, to get a better indication we can provide you with an Agreement in Principle.
You can use the Halifax Conveyancing Service to compare quotes from our approved panel of up to 200 conveyancing professionals.
Need help saving for your deposit?
Have a look at our savings tips page and view our savings range to help you get started.
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