Big favour - ad hoc mortgage figures

steveyme

Hi guys! If anyone could give some rough figures I'd be so grateful. My mortgage advisor is away for the weekend, and I could really do with some guidance for funds I need to gather quite quickly.

I've secured a decent mortgage deal for a £225k property with a 20% deposit.

It's just possible if I really pulled in some favours that I could get that deposit to 25% in the near future. How much would that be worth to me in short and long term figures? I appreciate that is an extremely open ended question.

So in a nutshell how much better do mortgage deals get making a jump of 20% deposit up to 25% percent, and is it worth making the huge efforts to accrue that money in a time limited situation?

Thanks if you can help! Steve

amnblog

about 0.2% off the rate on today's figures for mainstream products.


extra £12K in saves you about £55 a month in interest, about £65 on payments.

Nuttydj

edit: wrote this prior to amnblog and defer to their knowledge of the rate differences

ok so the numbers i'm going to give are REALLY general and obviously i would expect your mortgage broker to do a much better job of saying what this is actually worth.

Essentially though I have looked at two TSB mortgages one at 80% and one at 75% (for comparison) the 75% one is 0.75% cheaper and as its the same product i asusme all other charges are the same.

As the 0.75% applies to the whole amount that would cost £1,350 if you held the same balance across the year. Here I have made a simplification because you would pay back over the period but the pay down rate will depend on the period of the mortgage and the interest rate, lets assume though that this is knocks off about 10% of the £1,350 so lets go with £1,200.

Now to save that £1,200 you would need to raise an extra £11,250 so that money would essentially be worth about 10% a year to you, this is how I always view it. Though i would like to see others input and its worth waiting for that...

Also worth saying you may see no difference in cost depending on circumstances! just to check as well you have budgeted for all the things you will need (legal fees, stamp duty, urgent furniture) and a little for extras you don't expect? I bought my first house last year and was amazed how much it drained from my savings!