First Time Buyer. Advice please

oneilnufc

Hi, myself and my partner are currently looking to buy our first property and are a little undecided (to say the least) on which mortgage will be best for us. New Builds are out the question as unfortunately there are no developments within our desired location.After scouring various Comparison websites and entering our details on to the major banks websites themselves. We still cant decide what to do!

Various mortgage calculators and how much can i borrow calculators are putting us around the £170k mark. However the property we are interested in is listed at "O.I.R.O £119.500". We'd be hoping to try to get that down to £115k if possible. We currently have £10,500 saved. Now im aware when it comes to buying a property its not just the deposit we need to budget for so we have toyed with the idea of getting a 95%LTV mortgage with HTB to enable us to have a little spare cash for any issues we may come across.

I tend to be leaning towards the Post Office at the moment for its mortgages. Its just whether we hang on a little longer for the 90%LTV mortgage after weve saved up a couple more thousand. But inturn that will wipe out our entire savings.

These were the two i was looking at in terms of 90% vs the 95%
95% LTV Deposit of £5750
Borrowing £109,250. 30 Year Period, Initial Rate 4.95% (fixed for 2 Years) Calculated Monthly Repayments of £583.14

90% LTV Deposit of £11,500
Borrowing £103,500, 30 Year Period, Initial Rate 4.35% (fixed for 3 years) Calculated Monthly Repayments of £547.59

P.s Neither of these has an 'Arrangement Fee'

In an Ideal world i would prefer the 90% one but this means waiting maybe another year to save up the additional funds to cover the deposit and fee charges. The extra £30 or so a month wouldn't be an issue to cover in terms of the repayments, and this would leave us with cash to make the home our own so to speak.

Any advice/suggestions would be greatly appeciated.
Thank You.

Alphamare

It would be better I would have thought to compare a like for like product, as you are comparing a different ltv (fair enough) on two different length fixes!