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First time mortgage
FreshlyCutFlowers
Posts: 122 Forumite
Hello,
My partner and I have finally had an offer accepted and are now trying to sort our mortgage.
In the current economy, we are wondering whether or not we should put down as much of a deposit as we can (20%) or we should keep a bit back and put down just 15%.
The interest rate is close to nothing and we're conservative when it comes to investing, but we already have enough for contingency for getting ill / losing jobs etc, do you think it makes most sense to put down as much as possible in deposit or not?
My partner and I have finally had an offer accepted and are now trying to sort our mortgage.
In the current economy, we are wondering whether or not we should put down as much of a deposit as we can (20%) or we should keep a bit back and put down just 15%.
The interest rate is close to nothing and we're conservative when it comes to investing, but we already have enough for contingency for getting ill / losing jobs etc, do you think it makes most sense to put down as much as possible in deposit or not?
0
Comments
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Put down as much as you can afford with about 6 months worth of emergency cash in the bank and money left over for paying fees and for furniture etc.
If you do decide on the 85% LTV you could always do some over-payments if your lender allows it.
You need to look at how much the difference in interest is between 80% LTV and 85% LTV, and how much extra interest you will be paying after 1 year, 5 years, 20 years etc. If you can comfortably afford the 80% LTV you should always do that1
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