How much deposit should I put down

Danny937

Hi all,

Im just after a bit of advice. I am in the process of buying a property for £160,000, I am able to put down a deposit of £90,000 and have kept £20,000 in reserve for other spending, emergencies etc.

My question is is £90,000 too much, would I be better off putting down a smaller deposit and investing the money elsewhere. The interest rate for the mortgage would be 2%, most of the savings rates are below 2% apart from the 2year fixed rate ISAs.

hcb42

I think you have answered your own question

i would put the £90K down, as long as you are still comfortable with the £20K to fall back on

Rollinghills

What is the rate you could get on a fixed rate isa? If it is higher than your mortgage rate you could consider doing that as long as your mortgage interest rate is not affected.
Of course you could also put some money into the stock market hoping for a high return but that is a risky strategy obviously, with FTSE at all time highs and an outlook that's far from certain.

Danny937

Thank for the replies. The highest 2year fix is 2.15 so not a big difference. I'll think I'll stick to the original plan

Morgage_Confused

danny....have you considered an offset mortgage. It might be worth considering then you wont have to decide how much to put down as you will be offsetting the lot.

Radsteral

If only first time buyers were in the financial position as Danny s this would have been a perfect world ..... when i bought mine i had 30 k but had to dive for another 40 k lent from friends(many friends bit by bit)