Cost of borrowing

Zeesh

I am a first time buyer and therefore need a bit of help with somethings.

for example, I have two properties in view. Property A is 100k and property B is 70. The initial deposite available is 10k for both the properties.

My question is: Does the expensive property costs more in buying with a mortguage OR the cost of borrowing for both the properties will be same? bearing in mind the initial deposite will be 10% for property A and approx 15% for property B.

Many thanks.

Jimbo1976

There are a couple of parts to this.

Firstly, if you borrow £90k on property A, you are going to pay more for your mortgage than if you borrow £60k for property B. As you are borrowing more you are paying more interest and also more capital back.

Secondly, the size of the deposit affects the interest rate you pay, so you would normally pay a higher interest rate at 90% borrowing than at 85% borrowing.