Today we notice a few reports saying you should only purchase with a reasonable deposit.

We investigated this debate and found it has been based on whether its a good time for first time buyers to purchase rather than rent property. Some lenders claim this to be true as the rates are still very competative, though others claim that it takes for granted the need for equity and other hidden costs.

Purchasing property only with a large deposit

If you have a large deposit then is it worth buying on the housing market?

MyMortgageDirect claims this won’t help those that are first time buyers. Only home-owners with good equity should consider purchasing at this point of the year, which claims rates on mortgages are now beginning to look favourable when compared to the escalation of UK rental values.

Mortgage lender Santander claimed earlier this week that first-time buyers are now better off buying than renting, as in more or less every part of the country monthly payments for mortgage holders are now lower than for renters. While MyMortgageDirect say there is still one large caveat to the Santander claims – a large deposit is needed. They claim that those with less than 15 per cent of the purchase price for a deposit would see that mortgage rates are still not particularly attractive.

Related posts:

1. No deposit mortgage is back
2. UK housing market recovery in 2014
3. House prices set to Rocket or Plummet