Should we squeeze to 15% deposit?

Red-Squirrel_2

Afternoonteepee wrote: »

Thanks for all the replies so far. Regarding a signed letter to the lender, I know that family members would be very willing to do this. Ultimately, our major concern is not what is theoretically possible (and because if it isn't there is no dilemma!)... but what SHOULD we do, assuming the options are possible?

I'm going to say you shouldn't tell fibs on your mortgage application!

Afternoonteepee

Red-Squirrel wrote: »

I'm going to say you shouldn't tell fibs on your mortgage application!

If the money was from our own savings, would the advice still be to go 10% deposit not 15%?

Voyager2002

Personally I would go for the 85 per cent option: that £500 would be happier in your pocket than in the bank's! And then there is a saving of 20 pounds each week on the interest...

The need for emergency money is a real consideration, but home-owners generally have easy access to interest-free and low-interest credit cards and balance transfers. We can be sure that you would always be able to borrow the cost of a boiler repair, and would probably be able to transfer it to an interest-free card within a short space of time, so that the total cost of borrowing would be a good deal less than the money saved on the mortgage.

Red-Squirrel_2

Afternoonteepee wrote: »

If the money was from our own savings, would the advice still be to go 10% deposit not 15%?

It isn't though, so that's not relevant. It would be a different scenario.