Help I can't count!

stripedbanana

FTB sitting with a pen and paper trying to count mortgage stuff. I'm struggling to decide which is the better option. Based on a purchase of £130,000:

15% deposit at 2.18% fixed for 5 years =
19500 deposit
60 payments of £422.22
Total paid at the end of fixed rate £44,833

10% deposit at 2.68% fixed for 5 years =
13000 deposit
60 payments of £477.34
Total paid at the end of fixed rate £41,640

I'm struggling to make sense of which of these is the better option. My head tells me that 15% is obviously the better deposit to be putting down, but on paper the 10% appears significantly cheaper? Am I being really silly and missing something?

[Deleted User]

You're missing the fact that you'll have a much higher balance left to pay in the second option as a) you paid a smaller deposit and b) more of your payments have gone on interest.

stripedbanana

Thank you, I knew it would be something blindingly obvious I just couldn't see it for looking at it! You're right, we'd owe about £10k more on the balance with a 10% deposit. 15% it is :money:

telemarks

Any chance of scrapping everything together, maybe stoozing a credit card to get to 20% deposit??

stripedbanana

Any chance of scrapping everything together, maybe stoozing a credit card to get to 20% deposit??

Sadly not really! We're offering slightly over the valuation so the extra we have will be needed to bridge the gap between our offer and the LTV.