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Deposit for a Property

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Deposit for a Property
The majority of people who buy a property will put some cash towards the purchase. This is called a 'deposit'. As a guide, for properties up to £99,999 you will require to put down a 5% deposit and for those over £100,000 a 10% deposit is normally required.
The deposit will need to be in the bank account of your legal company for the date of exchange. As the average price of property has increased so much, it is now acceptable to pay a 5% deposit at the time of exchange even on properties over £100,000.

However, if for any reason you pull out between exchange and completion, then you will be obliged to pay the full 10% unless you have made a different agreement via your legal company.In the calculator put in 'deposit' of at least 5% of the property's value or more. If you can put down more than a 10% deposit you may get access to better mortgage rate deals, but for the calculator's purpose, the deposit has an impact on whether you pay a mortgage indemnity premium or not, so put in the figure you are planning to put down as 'cash'.

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