Raising deposit 'is key mortgage stumbling block'

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Raising deposit 'is key mortgage stumbling block'

Mon 19th Apr 2010

If people can gather together the deposit required to apply for a mortgage, they may find that they are in a much better position in terms of their monthly repayments than if they applied in 2007, according to one finance source.

Andrew Hagger, a representative from Moneynet.co.uk, accepted that raising a ten per cent deposit can be quite a "hurdle", but suggested that once this is out of the way, mortgage repayments for comparative properties have gone down over the past three years.

His research shows that the removal of stamp duty for certain houses combined with the drop in house price since autumn 2007 - which he describes as the peak of the housing market - means that the total cost of mortgage repayments over three years have dropped £4,951.80.

"If you can make the effort to save the sum required, your efforts will be rewarded with a place of your own and lower monthly mortgage costs for the next three years at least," he stated.

Mr Hagger recently commented on the best credit cards on the market, stating that Sainsbury's is offering extremely competitive deals.

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