If you’re looking to remortgage in Beverley, a common question is whether you’ll need to provide a deposit as part of the process. Thankfully, the answer for most people is no. Unlike buying a new home, where a deposit is typically required upfront, remortgaging in Beverley is more about the equity you already hold in your property.

There are a few scenarios where a deposit might be needed, though they’re less common and usually relate to more specialist circumstances. It all depends on your current mortgage setup, your financial background, and what you’re hoping to achieve from your new deal.

Understanding Equity and Loan-to-Value (LTV)

When you first take out a mortgage, your deposit helps reduce how much you borrow compared to the value of the home. Over time, as you pay down your mortgage and if your property goes up in value, you’ll have more equity in the home.

This equity is what lenders focus on when considering your application to remortgage in Beverley. They use a figure called the Loan-to-Value ratio (LTV) to compare how much you still owe against the current property value. The lower your LTV, the more likely you are to be offered better rates, some of the best deals on the market are reserved for homeowners with a low LTV.

When might you need to put down a deposit?

If You Have a History of Adverse Credit

If you’ve had credit issues in the past, such as missed payments, defaults or CCJs, some lenders may view your case as higher risk. In these cases, they might ask for a financial contribution to help reduce that risk effectively treating it like a deposit, even though you already own the property.

That doesn’t mean you can’t remortgage in Beverley with bad credit, but you might be asked to contribute more equity or provide additional reassurance to the lender. This is where speaking to someone who offers remortgage advice in Beverley can really help.

If You’re Looking to Release a Large Amount of Equity

Another scenario where a deposit might come into play is if you’re trying to release a significant chunk of equity from your home. For instance, if you want to borrow well beyond what you currently owe, perhaps for big renovations or a financial project, a lender may want to keep the LTV at a reasonable level.

In that case, they could ask you to leave more equity in the property or provide extra funds upfront to balance out the loan size. It’s less about needing a deposit in the traditional sense, and more about making the figures work in a way that meets lending criteria.

How a Mortgage Broker in Beverley Can Help

The rules around deposits, equity and LTVs can get confusing, especially when you’re juggling other financial decisions. Our team offers clear and simple remortgage advice in Beverley, helping you understand exactly where you stand.

We’ll take a look at your current mortgage, talk through your plans, and explain whether a deposit might be needed based on your situation. If it’s not necessary, we’ll help you move forward with confidence. If it is, we’ll explore your options and find a deal that works with your available equity.

Date Last Edited: May 29, 2025