Cash only v cash + mortgage?

greencode

I have around £180k to my name (in ISA's, savings accounts, Premium Bonds etc) but am looking at buying my first house, for around the £140-150k mark.

Would it be better to pay all cash or pay something like £100k and then get a mortgage for £50k (or possibly loan - not sure what would be cheaper).

Can't decide so need some help and advice.

Thanks

Thrugelmir

Might as well buy for cash unless you've the savings earmarked for something else.

InsertWittyName

That's a lot of cash to have in savings. You'd likely earn more over the longer term if you invested that and took a mortgage instead.

If you are against investments then definitely cash if the interest rate on a of a mortgage is greater than the interest rate on your savings.

getmore4less

It should be possible to borrow at a lower rate than you can get from your cash/investments.

At what rate can you continue to build up assets from income?

Are you or will you become a 40% taxpayer any time in the future.

greencode

Thanks for the replies and apologies for not replying sooner. I didn't receive any notifications!!

Yeah, I did think about whether it would be better to get a part mortgage and whether my savings would gain more interest than what I would end up paying back on the mortgage.

I do like the idea of paying all cash and having no extra payments to make and then continue to save money.

I'm also a bit silly as I've currently no pension (I'm 40) and need to get that sorted out - I realise it's very late but I can't go back in time - So, I have to think about that too.

greencode

Was just having a little look as well and I could get a £50k 10 year fixed mortgage with TSB where I would end up paying £56,991 over 10 years. I could then lock away £50k in a 5 year fixed rate bond and get £56,580 back. So, money wise it could be a better idea to get part mortgage.

Typhoon2000

ignore wrong forum