At first, of course – the idea of parting ways with a hefty chunk of capital might seem daunting, but this crucial first step can put you at a serious advantage as you kick off your investment journey.

Among these advantages, is your access to more favourable mortgage rates. Lenders generally see you as a trustworthy and responsible investor if you are able to front a larger deposit. This will get you access to much lower interest rates, which will see you through the life of the loan and potentially save you thousands.

The snowball effect of these reduced rates is a welcome fall in monthly repayments. For those that have been paying attention, this improved cashflow might be the difference between breaking even and healthy returns.

The advantages don’t stop there; a larger deposit can transform an investor from a run of the mill applicant to a lender’s dream – which is exactly who you want to be if you’re looking into more mortgage options down the line.

In an unpredictable property market, the spectre of negative equity looms large. Here, too, a substantial deposit acts as a bulwark. By owning a higher percentage of the property outright, investors insulate themselves against market fluctuations, reducing the risk of finding themselves underwater should property values take a dip.

If it’s negative equity you’re worried about, again – a considerable deposit acts as a protective suit of armour. By owning a higher percentage of property outright, you are insulating yourself against changeable market conditions, and you reduce the risk of running into trouble should values take a dip.

For those looking to build a resilient and profitable property portfolio, the message is clear: when it comes to deposits, bigger is often better.

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