Mortgage deposit & Length of fixed term

d598

Hey all,


I have a question that probably seems very obvious, but is causing us some headaches.


We are in the process of selling our property and buying another, and we are just confirming what deposit we want to put down.


We sold our property for a significant amount of money and as a result, this has allowed us to increase our budget. We are buying in London so this has helped out massively.


The query is whether to put either 20% (£110k) or 25%(£139k) as a deposit. If we put the 20% deposit down it does mean that we could probably afford to do either a loft conv or a side extension. If we put the 25% deposit down we will have about half of that money so will have to save to do it. My wife is pregnant at the moment so the building work won't be something we will be doing for a least a year. The monthly mortgage saving is £220 if we go with the 25% deposit.


Anyone have an opinion?


Thanks in advance!

Thrugelmir

Mortgage products are structured towards LTV. So obtaining the best rate will be influenced by the deposit you put down.

No reason why you don't apply for a home improvement loan when you eventually decide to do the work. In the meantime your money will be majking a good solid return.