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Higher mortgage or bigger deposit?
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![[Deleted User]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
[Deleted User]
Posts: 0 Newbie

Hello,
I've just had an offer accepted on a house and trying to work out how large my deposit should be. There seems to be a significant difference in the monthly payments and amount paid overall with a higher deposit, but is it worth digging deeper into savings to account for this? I wondered what other people have done when it came to working out deposits.
I've just had an offer accepted on a house and trying to work out how large my deposit should be. There seems to be a significant difference in the monthly payments and amount paid overall with a higher deposit, but is it worth digging deeper into savings to account for this? I wondered what other people have done when it came to working out deposits.
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Comments
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@Deleted_User Given the rate-environment at the moment, there isn't a huge difference in mainstream interest rates between 60% LTV and high LTV.
But even so, given that rates are relatively high at the moment, it would make sense to take out the smallest mortgage you can while leaving sufficient cash that you may need access to. For things like any work you need to do on the house, your rainy day fund, etc.Deleted_User said:Hello,
I've just had an offer accepted on a house and trying to work out how large my deposit should be. There seems to be a significant difference in the monthly payments and amount paid overall with a higher deposit, but is it worth digging deeper into savings to account for this? I wondered what other people have done when it came to working out deposits.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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Great advice @K_S, thank you!0
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i can see the following:
60% LTV 4.34% v
90% LTV 5.49%
so a substantial difference, go with 60% LTV if you can.1 -
jj_43 said:i can see the following:
60% LTV 4.34% v
90% LTV 5.49%
so a substantial difference, go with 60% LTV if you can.3 -
Have you looked at Offset mortgages ?
Still putting down a good deposit but putting your savings to good use !
Keeping your savings in an offset account means you can tap into cheap borrowing if necessary!
When you have an spare money you save into the offset account.
Now Barclays even allow current accounts to be used to offset the mortgage debt1 -
@dimbo61 I haven't but I certainly will now! Barclays are my first choice for a mortgage anyway so will look into this, thank you!0
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Deleted_User said:@dimbo61 I haven't but I certainly will now! Barclays are my first choice for a mortgage anyway so will look into this, thank you!0
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