Deposit
Mortgages & secured lendingThe upfront amount you pay toward a purchase, reducing how much you need to borrow.
Overview
In mortgages, a larger deposit usually means a lower loan-to-value ratio.
Lenders often offer better rates at lower loan-to-value levels.
Why it matters
- It reduces the amount you need to borrow.
- It can improve eligibility and interest rates.
- It lowers monthly repayments.
FAQs
Does a bigger deposit always help?
Usually yes, because it reduces risk for the lender.
Is a deposit required for all loans?
No. Deposits are common for mortgages and car finance, but not all credit products.
Related terms
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