5% or 10% deposit, which is a better decision?

jazzyja

Hey, sorry maybe long winded!
So today I was about to view my dream house and it was snapped up 10 mins before my appointment! Devastated isn't the word. Broker says this is the market at the minute unfortunately and to kinda get used to it! 
I've seen a property which I only need 10% but it's not perfect for me, I would prefer something bigger but it is nice. 

However I've seen another property that's perfect but I currently only have approx 8% of that price. My financial situation is I have a clean credit history for the last 3.5 years, I have a car on finance and a few 100 on a credit card. I can afford the house I've seen. My bank statements, in my opinion, don't look great as I never ever use cash so I find there's a ton of transactions on there, although my broker hasn't mentioned anything when he's looked. What are my chances of getting a 95% ltv? Broker at first said I would get better rates putting 10% down but right now I'm just tempted to get a bigger better house! Or is the best idea to get a decent house with 10% and look at something bigger and better further down the line?! I'm just so stressed with it all! Any advice is much appreciated! My broker is looking at 5% deals for me but I'd like other opinions too! Thanks 

tacpot12

I'd suggest you buy the house you want while you can, if you can do so with your 8% deposit. You might pay a little more on the mortgage, but if you can afford to do so, I would do it to get the right house for you. 

getmore4less

if you find the place go for it.
If you can trade a move(expensive) for a bit more going out sooner it will in many cases be worth it.

What the cost will be to see if you are happy with that

if you take the per £100k  with 5% and 10% down.

fairly typical will 4% and 3% rates

on a 95% 2 years often look the better option as the SVR is lower and you may drop down a LTV.

over 2 years on 30year full term
95%

amount	rate	payment	owing
£95,000.00	4.00%	£453.54	£91,585.87

needs overpayment or some price rise to hit 90% pay off ~£3400 in 2 years
90%

amount	rate	payment	owing
£90,000.00	3.00%	£379.44	£86,184.81

needs overpayment or some price rise to hit 85% pay off ~£3800 in 2 years and save ~£1780 in payments

pay the same as the 95%

amount	rate	payment	owing
£90,000.00	3.00%	£453.54	£84,354.42

hit 85% and pay off ~£5,600