First time Buyer - Large Deposit advice required

softmicro

So recently I received a substantial amount of inheritance and I'm looking to put a portion of it toward buying a house.

Ultimately I'm not sure what kind of percentage of the mortgage would be the most beneficial? Hypothetically I could put down £95,000 on a property worth £190,000 which would obviously be a 50% deposit, but do mortgage lenders prefer this? Would it be more prudent to put down less and have a 40% deposit?

I'd be looking to keep mortgage payment's minimal and focus on having as little to stress about when it comes to my finances as possible really.

If anyone can lend any advice I'd really appreciate some, I feel useless when it comes to things like this.

kingstreet

Typically, the best mortgage products are reserved for a 40% deposit or more.

There is no interest rate benefit in a bigger deposit as the rate will be same whether you put down 40% or 50%.

However, the lower mortgage amount will result in lower payments so most people borrow only as much as they need while maintaining a savings fund for emergencies.

Mortgage_Adviser

There is a small number of lenders, for example Coventry Building society who reserve theor best products for the customers with at least 50% deposit.

Tom99

[FONT=Verdana, sans-serif]You could put down 40% and keep some cash in hand just to see how it goes. If after a year say you don't need the cash then you can overpay the mortgage.[/FONT]

getmore4less

If you want the smallest change to your monthly outgoings.

Smaller debt
Lower rate
Longer term.


Longer you have the debt the more interest you pay.


If you don't spend it all on the property what do you want to do with it.

Might be handy to have a full year of outgoings covered by some saving so you don't have to worry so much about the job.

dimbo61

So why not look at an offset mortgage and put down a 40% deposit.
Put the rest of the money into the offset account.
Setting up a new home has so many unexpected costs.
Having a few thousand pounds in savings to replace a boiler or pay for repairs would take that worry off while still offsetting the mortgage.