How much capital will a client need?

We use the term 'capital' to refer to cash savings, investments that can be cashed in and equity in a current property. Your client may also be able to obtain financial assistance in the form of capital from friends and family, local or national government, or charitable organisations.

Your client will always need some capital, even if they have a mortgage and a grant, to pay home buying costs.

Note:

Many clients don't realise that they will need capital to fund any offer over the value of a property (as assessed by a surveyor). A mortgage or grant will not normally fund any payment over this valuation. For this reason, properties sold at a fixed price, newly developed properties or self-build properties may be a better option for someone with little capital.

The amount of capital your client needs, and their ability to buy, will be influenced by whether they will be buying using mainly employment income or using Income Support Mortgage Interest payments (ISMI)