How much to use for deposit

looteht

Registered User
Messages
17
Hi,

I am looking to buy a house.

I have around 100k saved for deposit.
The question is how much of savings I should use towards house.
Am I better off getting as big a mortgage as possible and keeping the rest in savings..
 
It depends on how much the house that you want to buy is. You will need to put up 8% - 10% yourself. Lenders will give you a better rate if your LTV is lower.

The more you put up, the lower the debt that you are in, the quicker you can repay, be debt free.

I have never met somebody who regretted not having debt.

I wouldn't put it all in, keep some for emergencies.

Steven
www.bluewaterfp.ie
 
Only 8 or 10%. I thought it was more like 20% minimum nowadays?


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It depends on how much the house that you want to buy is. You will need to put up 8% - 10% yourself. Lenders will give you a better rate if your LTV is lower.

The more you put up, the lower the debt that you are in, the quicker you can repay, be debt free.

I have never met somebody who regretted not having debt.

I wouldn't put it all in, keep some for emergencies.

Steven
www.bluewaterfp.ie

The house is around 220k. Can get mortgage for 180.
Should I just pump all into house.
 
No. As mentioned by S Barrett you need to keep some savings for emergency rainy day fund that you can access quickly. I'd keep 10k in savings.

That would leave mortgage of 130k which isn't bad at all.
 
Most banks have better interest rates if your mortgage is 60% or less than the value of the house.

This makes a huge difference over the mortgage term so I'd put €88,000 into a €220,000 property and take a €132,000 mortgage.

This leaves €12,000 remaining, of which €5,000+ will be spent on fees associated with buying. That leaves about €7,000 for buying things for the house - with any leftovers put into savings.

Then, rather than considering overpaying the mortgage, I'd concentrate on building savings back up to €15,000 first.
 
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