Mortgage deposit

angieo1970

My partner and I are trying to decide on how much we should put down on a deposit. We have roughly 18% if we buy a property to the value of 240k. However, we are looking at a property that needs an extension and fixing up (new heating, new windows).
We have money in a 5 year company savings scheme and will use this to pay of some of the mortgage at a later date.
Therefore,  we are now thinking that if we put 10% down, although we will pay more interest we will have money to do the work straight away and can enjoy the house.
We can then pay top ups on the mortgage each month and then in 5 years time pay more off the mortgage from the savings.
If we put the whole 18% down it will be a long time before we can do any work on the house.
Part of us are thinking life's too short put less down get the work done and enjoy the extension. The other half is thinking about the higher interest rate on a 10% deposit 🤔
The extension could wait but the work needs doing to save on energy bills. We just thought having that extra money we could get a lot more done sooner.
Any ideas?

K_S

@angieo1970 15% deposit and use the 3% cash left over to do the fixing up? Or else a 90% LTV 2-year fix, do all the work in the 2 years and then remortgage?

You could even consider a 2-year 90% LTV discount product where currents rates are significantly lower than a fix, but of course with the risk that they could go up during the initial term.