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Deposit - Purchase

  • The amount of capital (value) contributed to a purchase or
  • The value of an interest in a property (equity) contributed towards a purchase
  • The balance of the purchase is funded by the mortgage loan.
  • Say you buy a house for £100k.
    • You borrow £75k and you provide £25k deposit.
    • 75% LTV = 75% of debt you owe to the lender and
    • 25% of the deposit is the amount you provide to buy a property.
Published: 5 November 2013 Last Updated: 17 November 2021