Deposit
If you wish to demonstrate to somebody selling something that you intend to buy an item, you might be asked to put down a deposit. A deposit is a sum of money which in effect reserves the item for you for a certain period.
If you want to take out a loan for a mortgage you will almost certainly, unless your credit rating is very good, need to put down a deposit. This is because the mortgage loan would be secured on the house itself, and the average loan to value ratio is lower than 100%, meaning you won’t be able to borrow the full value of the house you want to buy. The deposit represents your commitment to the deal.
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