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Loan v Mortgage Deposit

If I have cash in savings and I want to buy a car and a house (first time solo buyer), am I better of putting as much as possible towards the deposit of the house (i.e all my savings) and getting a loan for the car (£20k) or should I pay cash for the car and reduce my deposit towards the house .

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    It depends.

    What is your affordability like? What will your deposit % be with or without the car money?

    Essentially, if you're looking at getting a mortgage, don't go getting loans for anything else.

    Even better, shelve plans for any car more than a couple of grand until after completing on our mortgage.
  • Thanks. Affordability is good. I essentially want to buy a camper van and a house. I am happy to rent for another year or more if it means I can have the van (lifestyle choice)
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    In that case, pay cash and rebuild your deposit for when you're ready to buy.
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