Lenders have become more cautious about taking on all the risks associated with buying a property. While 100% mortgages have re-emerged in specific circumstances, most lenders still require a deposit. If you are unable to pay your mortgage in the future, the lender needs reassurance that it can sell the property to recover the loan.
This increased caution often results in lower loan-to-value (LTV) ratios, requiring personal deposits that may be larger than in the past.
The source of your deposit could be from your current property, savings, inheritance, or a gift. However, some lenders may not accept loans from family or friends as a valid source of deposit, and this may also impact the amount they are willing to lend.
Some Buy To Let Mortgages are not regulated by the Financial Conduct Authority.
