FTB difference between 10-15% LTV

KingMob

After some frustrating experiences with estate agents, have agree a price for a property this is just right for me. Have appointment booked for Wednesday to apply for mortgage. Appreciate any opinions on whether I should push for 15% deposit or stick with 10% which would give me a sizable buffer. Some relevant info.

* £150k property, 20 year term (perhaps 15)
* Property seems to be in good condition, no obvious work needed.
* Around £28k in bank today.
* Affordability not an issue.
* Been renting for years, so FTB but vacating/moving expenses.
* Not relying on this but if I stay in my current role, will receive £12k in shares every January for next three years. Share price increased 30% over last year.

From what I've read here and elsewhere I can't determine if 15% deposit makes much of a difference in regards to obtaining a mortgage/rates offered. Understand 20% would but 15% mostly lowers what I need to pay back?

I feel I can afford 15% but 10% would leave more to buy new furniture, get locks changed, purchase carpets/etc from vendor if necessary, etc. I could deal with the basics for a few months if I had to and feel I could budget enough to buy a big item (fridge, sofa, etc) a months if it came down to that.

Reason I mentioned the shares is I have an idea in my head that I'd like to use them to overpay for the first few years. I believe that 10% overpayment is possible/common, so was considering 10% deposit now then overpaying whatever remains of my buffer+shares in January.

KingMob

Ack, been so wrapped in dealing with dodgy EAs and getting an offer accepted I completely forgot other forums exists. Apologies if this should have been posted elsewhere.

GoingOn30

It depends on the lender, for some 15% makes no difference but there are definitely lenders who will give you a better mortgage rate on a 15% deposit than they will on a 10% one.
Have a play with the different online calculators to see how big of a difference it could make for you.

kinger101

The differences between 10% and 15% (and even 20%) are quite slight. In many cases, it would be better to get higher LTV and keep the excess in an account with decent interest. I'd personally veer towards that if it still gets you the house you want within budget, as it's nice to have a cash buffer for rainy days.

Your attitude to risk might be different, but I'd personally go with a longer term and invest the space cash in something more likely to get a decent return. Overpaying mortgages at sub 2% is bonkers.

KingMob

Thanks, sounds like I'm not missing anything obvious. Mainly wanted to be prepared before speaking to mortgage advisor again on Wednesday. Had got some quotes last time we spoke but hadn't though to ask about any negative connotations for going for 10%.

15-20 year term was based on being a F.
TB but also being in my early 40s. Played about with the various calculators and 20 years with overpayment for first few years looked good but will check again