Based on the BOI figures , the average FTB contributed a deposit of 23% last year. I can understand the logic between switching between a 10% and 20% deposit given the lower rates, but why would anyone contribute more initially? Surely as a FTB you’d be better to keep the extra cash for fixing up the inevitable problems in the new property?
You can always dump it into the mortgage afterwards if you don’t need it.
Hmmm bought recently and had a LTV of about 66%. Left myself pretty close to broke with this which was a mistake in fairness, keeping €10,000 spare and having a slightly higher LTV would have been a more sensible approach in hindsight…
That’s the truth of it. I doubt any one is getting a mortgage with much less than a 20% deposit with a large minority having a much greater % deposit. If the average punter could get away with a smaller deposit they would.
I would have thought it would lead to less risk of a bubble because demand for property would be restraint by a minimum deposit, and that demand couldn’t suddenly increase at the first sign that prices are going up like in the last boom. If prices started rising people with no savings could not go down to the bank and take out 100% mortgage before they ‘‘miss the boat’’ which would add to a speculated bubble based on easy credit.
Giving credit to someone just because this person has a 20% deposit does not mean that this person couldn’t default in less than a year. It should all be about affordability and the deposit should just be a leverage dealing with the banks.