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Large equity deposit for LTV - use or invest?
mixwell
Posts: 15 Forumite
I hope this is the right forum for this question?
We have sold our house for a price that leaves us with £300k equity.
We are looking to buy a new house for around £500k (under!)
The query I have is whether I should use the entire £300k equity as deposit on the new property or whether I should take a larger mortgage over 20 years, or possible over longer period and then use some of the equity for 'safe' investments?
This surely would incur tax and perhaps isn't the best plan but I just need to understand what options I have.
LTV would be 38%, deposit 60%.
Regards
M
We have sold our house for a price that leaves us with £300k equity.
We are looking to buy a new house for around £500k (under!)
The query I have is whether I should use the entire £300k equity as deposit on the new property or whether I should take a larger mortgage over 20 years, or possible over longer period and then use some of the equity for 'safe' investments?
This surely would incur tax and perhaps isn't the best plan but I just need to understand what options I have.
LTV would be 38%, deposit 60%.
Regards
M
0
Comments
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Safe investments do not seem to exceed the mortgage rate at any time, and less so if you consider tax. Essentially, you are proposing to borrow £x on the mortgage to put into 'safe' investments. If you don't borrow £x, it guarantees you a return equal to the mortgage rate you would have paid.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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Thanks, so basically that is a no!! Use the deposit to put down as much as we can?0
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