Inherited money should I put all down as deposit or only 25%?

davidlunn

Hi,

I am a first time buyer and have recently inherited some money I have enough to out down a very large deposit on £150,000 house. Is this what I should do or just put 25% deposit down and save the rest of the money? Your answers/advice would be very much appreciated thanks.

andrewmp

It would probably make sense to put down more to get a better mortgage deal.

It's always worth keeping some though for emergencies. How much could you put down, percentage wise, if you put down all of your money as a deposit?

davidlunn

It would be about 70%. I thought that but I dont think the deals get much greater in terms of interest rates above 25%..... I could be wrong though.Thanks for your reply

VIGILANT22

davidlunn wrote: »

Hi,

I am a first time buyer and have recently inherited some money I have enough to out down a very large deposit on £150,000 house. Is this what I should do or just put 25% deposit down and save the rest of the money? Your answers/advice would be very much appreciated thanks.

Diversification is the word...ie Don't put all your eggs in the one basket....

However, many factors have to considered, therefore you would be better having a financial review with an independent financial adviser (not mortgage adviser)..who will look at the whole picture and your own personal circumstances and discuss such things as maximising tax efficency with yr money etc..

Cannon_Fodder

A dozen factors will influence the best combination;

- income
- job security
- pension arrangements
- current savings/emergency fund
- credit history, if slightly iffy a bigger deposit might help, if totally shot it would make little difference
- mortgages available in light of income/credit history
- personal preference on mortgage - tracker rates may be beaten by some ISAs, so savings may outpace mortgage costs (until rates rise). If you prefer a fixed deal, its unlikely to be beaten by savings, so increase the deposit.
- future plans for house, will you need funds?

etc etc

Deals do get better the higher the deposit, but only so far.

Worth a visit to a whole of market mortgage broker to see what 50% deals are out there, perhaps.

andrewmp

davidlunn wrote: »

It would be about 70%. I thought that but I dont think the deals get much greater in terms of interest rates above 25%..... I could be wrong though.Thanks for your reply

I'd probably put down 40% deposit which should open up the better deals.

Like others have said, seek financial advice with someone who can go through your full circumstances.