Could waiting for a higher deposit work out better?

adpad

We currently have a deposit of £20,000. We are looking for a mortgage around the £180,000 mark.

We now have a dilemma. Try and buy now with that deposit. Or.... stay renting for another year (£10000 in rent over the year).


If we were to stay renting, and could get the deposit up to say... £30,000, would this have much of an effect of the amount of interest we would have to pay? Potentially working out cheaper in the long run?

stator

If you have a 10% deposit then just go ahead with it. An extra 5% deposit might save you £100 per month, assuming a 5 year fixed rate that would save you about £6000. You'll waste more money on rent than you'll save and house prices might go up too.

-taff

That's a 10% or better deposit. If your wages will cover 800-900 [roughly] a month, you might as wel buy.