First time buyer deposit question

marmitexx

Hi 
looking for some advise which I can’t seem to find on Google (not yet seen a mortgage advisor) I’ve been left quite a lot of money so looking to buy my first home with my partner, I only want to do a 10% deposit and keep the rest of the money I have to maybe invest/travel/holiday home etc so my question is is it ok to not use all the money I have in my savings towards a deposit? Will they ask me to put more in? Sorry hope this makes sense lol 

thank you  

hippocrates1

You don’t have to put down more 

marmitexx

Ahh thank you for replying  

[Deleted User]

It's your call how much you put down for a deposit for the most part. There are benefits to having a larger deposit in terms of the interest you pay on the mortgage and also potentially being able to pay it off earlier. However, it can also land you in a difficult position if you pay too much for your deposit, as you may need to have some set aside for repairs and other unexpected costs, as well (as you say) for things like travel etc. that you may wish to pursue. So, the short answer is no, you are not obligated to pay all your savings into a deposit. 

AdrianC

Will the return on your investments, post-tax, outstrip the interest you pay on the borrowed money?

K_S

marmitexx said:

Hi 
looking for some advise which I can’t seem to find on Google (not yet seen a mortgage advisor) I’ve been left quite a lot of money so looking to buy my first home with my partner, I only want to do a 10% deposit and keep the rest of the money I have to maybe invest/travel/holiday home etc so my question is is it ok to not use all the money I have in my savings towards a deposit? Will they ask me to put more in? Sorry hope this makes sense lol 

thank you  

@marmitexx If your circumstances (and the property you're buying) allow you to get a 90% LTV mortgage, then no one's going to 'force' you to add any more deposit.

Having said that, it's good to have spare funds in the background in the event that 90% LTV mortgage isn't a possibility. A few examples (not an exhaustive list) of reasons for that could be - adverse credit history, new build property, some kinds of flats, non-standard construction, affordability issues, etc etc.

dimbo61

I wonder what the person who left you this money would hope you do with this inheritance ?
There are lenders who do 90%LTV mortgages but the rates are much higher than say 85% or 75% deals.
Your buying your first home and you could consider an offset mortgage where you put down say 15% deposit and keep the rest of the inheritance money in the offset account.
If you need funds to renovate the property you can dip into the offset account.
New boiler, car or holiday just take the money out of your Offset.
Any spare funds at the end of the month go straight into the offset accounts.
Even your wages each month with Barclays for example 

lizabethgell

I would personally put as much down as possible to reduce your monthly repayment which may in turn leave you money to do the above mentioned things 

lizabethgell

lizabethgell said:

I would personally put as much down as possible to reduce your monthly repayment which may in turn leave you money to do the above mentioned things 

But legally you can put down whatever you want or lender requires