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