Average cost of a two-bedroom property
This represents the average cost of a two-bedroom property for the area you have chosen.
Please be aware that values can vary substantially within areas.
Average cost of a three-bedroom property
This represents the average cost of a three-bedroom property for the area you have chosen.
Please be aware that values can vary substantially within areas.
If you select 2 bedrooms your deposit boost will be based on having 1 housemate; if you select 3 bedrooms, we will calculate the boost based on 2 housemates.
What’s a deposit?
A deposit is the amount of money you pay upfront towards the full cost of a property whilst borrowing the rest (a mortgage) from a lender (bank or building society). There are usually minimum limits to meet which are a percentage of the property's full value.
The bigger the deposit you pay upfront, the better mortgage deal you are likely to get.
If you were to buy a property for £200,000, you would need to put down £20,000 for a 10% deposit or £30,000 for a 15% deposit.
A higher deposit may be required for a flat or new build property.
Reasons to save a bigger mortgage deposit: While the minimum deposit you’ll need is 5%, there are plenty of reasons to save more if you can.
Pros:
- Cheaper monthly repayments
It might sound obvious, but the bigger your mortgage deposit, the smaller your loan will be and the cheaper your monthly repayments.
- Better mortgage deals
A larger deposit will also make you less risky for mortgage lenders and, as a result, they’ll generally offer you lower interest rates. Plus you'll have more choice of providers. For example, 85% mortgages are generally around 1.2% - 1.6% cheaper than 95% deals.
- Improved chance of being accepted
All lenders conduct affordability checks to work out whether you can afford the mortgage repayments, based on your income and outgoings. If you only put down a small deposit, it’s more likely you will fail these checks because you’ll need to spend more on your mortgage each month.
- Bigger buying budget
Lenders typically offer a loan of up to 4.5 times your annual salary, so if your salary is relatively low and you can’t borrow enough, you might need a larger deposit.
- Less risky
If you own more of your home outright, you’re less likely to fall into negative equity, where you owe more on your mortgage than your property is worth. Being in negative equity can make moving house or switching mortgage difficult.
Cons:
- If house prices rise while you are saving up a bigger deposit, the amount you’ve saved is reduced as a percentage of the property's value.
- You could be paying rent while you wait to buy which can limit the amount you can save.
The number of people buying is used to calculate the predicted number of months that it would take either 1 or 2 people to save a deposit equivalent to the boost you could get with Moovable today, based on time saved criteria.
Housemate disclaimer
If you have someone in mind, great. If you need us to help you find a housemate, we can help with that, too.
Moovable deposit boost
Your Moovable deposit boost illustration is based on the information you’ve provided and is not a guarantee of how much Moovable can boost your deposit by. The boost could be higher or lower based on other factors that will be considered, such as:
• Predicted rental income
• Exact location
• Number of bedrooms
• Length of agreement
• Type of layout
Change the Moovable agreement 'years' to get an indication of how it impacts the savings results.
Rental agreement
This is the time in years that Moovable will work with you to rent your spare room. If you want to work with Moovable on a bespoke time period (e.g. 30 months), please get in touch to discuss.
There is an option to end your agreement early should you wish to; however you will incur an early termination fee depending on the time remaining in your agreement.
What is the estimated mortgage repayment saving per year?
This is the savings you would make per year during the fixed period of a repayment mortgage when comparing:
LTV mortgage achieved using Moovable boost v 95% LTV mortgage.
e.g. Gosforth 85% LTV using Moovable vs 95% mortgage using 5% saved so far.
This savings figure has been calculated using the following information:
- The mortgage is payable over 25yrs, initially on a 2 Year Fixed rate.
- Rates used in the calculation for relevant LTV:
- i) >90%<=95% LTV = 5.64%
- ii) >85%<=90% LTV = 4.94%
- iii) >80%<=85% LTV (>15% deposit paid) = 4.64%
- iv) <=80% LTV = 4.39%
What is the loan to value (LTV)?
The loan to value (LTV) is essentially the size of mortgage a lender is prepared to offer you in relation to the value of the property you are buying.
It is expressed as a percentage. So, for example, if a lender offers a mortgage deal which has a maximum 80% LTV, that means they will lend you up to 80% of the property value and you will need to find a 20% deposit.
What is the predicted number of months required to save an equivalent deposit?
This figure represents the number of months based on your 'number of people buying' criteria, that you would need to save the equivalent deposit that you could get with Moovable today, based on average earnings for the area, and assuming you save 10% of your salary each month.
