Understanding Mortgage Deposits: Exploring Options for Buying a House in Scotland

Are you struggling to understand mortgage deposits when buying a house in Scotland? In this video, we're going to cover everything you need to know about mortgage deposit options, including buying above or below the home report value, genuine bargain pricing, using a gifted deposit from family and friends, and new build gifted deposits.

First, let's talk about what happens if you're buying above the home report value. If you buy a property for more than its value, you'll need to pay extra money on top of your deposit. For example, if you buy a house for £105,000 and plan to put down a 5% deposit, your total deposit would be £10,000. This is because your deposit is based on the value of the property, not the purchase price.

If you're buying below the value of the property, you might think that you can use the extra money to boost your deposit. Unfortunately, this isn't the case. Banks still require you to put down a 5% deposit based on the purchase price, not the value of the property.

However, there are some exceptions to this rule. If you're buying at a genuine bargain price, such as from a landlord or family member, you can use the discount towards your deposit. You can also consider setting up a lifetime ISA or receiving a gifted deposit from family or friends to help with your down payment.

We'll also cover new build gifted deposits and how they work. So if you're looking to buy a new build home in Scotland, stay tuned for that.

Understanding mortgage deposit options is crucial when it comes to buying a house in Scotland. It can impact your mortgage and how much you can afford to borrow. By watching this video, you'll have a better understanding of how to navigate mortgage deposits when buying a home in Scotland. Don't forget to like and subscribe for more helpful videos like this one!

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