Advice re: deposit amounts

essex.cyclist

Hello


I am in the process of saving for a first property with my wife, and we have been planning to get a mortgage with a 15% deposit on the value of the property.


However, we're at a stage where we want to buy, and lowering our deposit to 12-13% would help us get to where we want to be, quicker.


The monthly payments don't seem to change a great deal, and we can comfortably afford them.


Does anyone have any advice or concerns regarding lowering our deposit by that amount?


Thanks!

Thrugelmir

essex.cyclist wrote: »

The monthly payments don't seem to change a great deal, and we can comfortably afford them.

And if interest rates rose significantly in the future?

ukbrockest

you will have to go for a 90% LTV product

essex.cyclist

Thrugelmir wrote: »

And if interest rates rose significantly in the future?

What's your point?


This would remain a valid question, even with a 15% deposit.

essex.cyclist

ukbrockest wrote: »

you will have to go for a 90% LTV product

I don't understand?


Surely it'd be 87 or 88% LTV?

somethingcorporate

Looking at any mortgage providers website will show you there are not any products for 88% LTV mortgages.

There will be options at 85%, 90% etc.

If you don't have the deposit for the 85% LTV products the next tier is 90% and they will be more expensive.

essex.cyclist

somethingcorporate wrote: »

Looking at any mortgage providers website will show you there are not any products for 88% LTV mortgages.

There will be options at 85%, 90% etc.

If you don't have the deposit for the 85% LTV products the next tier is 90% and they will be more expensive.

Okay, thanks.


I must say though, from researching the options this morning, the monthly payments don't mirror what you're saying.


I've noticed a huge jump at 10% deposits, but not much difference between 12-15%.

Idiophreak

Ignore this post.

essex.cyclist

Idiophreak wrote: »

Ignore this post.

Most amusing.


Or not.

dimbo61

So having a very quick look at moneysupermarket you can get 2 year fixed deals at 2.75/3% with 15% deposit.
With only 10% deposit you are looking at 3.75%
This would add £50 a month to the cost each month borrowing £85/90K

somethingcorporate

essex.cyclist wrote: »

Okay, thanks.


I must say though, from researching the options this morning, the monthly payments don't mirror what you're saying.


I've noticed a huge jump at 10% deposits, but not much difference between 12-15%.

Have a look at the rates rather than the monthly payment, the differences should be more obvious.