Put all savings into purchase of house and borrow less?

[maimai100]

Upon the recent sale of my property I am left with approx € 50k.

Having read many posts on the site I see that one of the main mottos is DO NOT SAVE WHILE PAYING BACK DEBTS

I wish to purchase a new build property for € 350 k. I cannot decide whether or not to:

(1) Put the total € 50k against the house and get a mortgage of € 300 k.

or

(2) Put say € 30 k against the house, get a mortgage of € 320 k and have € 20 k in savings.

My personal feeling is that I will probably never have the opportunity again to have a lump sum like € 20k to put into savings for my childs future, for security, for emergencies that happen over the years etc, etc.

If I put the total € 50 k against the house, once I am paying the mortage, there will not be much left each month to put into savings after all of the other monthly expenses.

But then again if I put the total € 50k against the house, I am borrowing less for the mortgage and thus paying less interest over the life of the mortage.

So I am left with a headache € 20 k savings and € 320 k mortgage, or € 0 savings and € 300 k mortgage

I look forward to reading your advice / opinions

 

[ClubMan]

In my opinion you should keep enough to cater for an emergency fund (e.g. a few months total living expenses) in case you ever fall on hard times and need to live off your savings (e.g. lose your job and need the savings to tide you over until you get a new one) and then use the rest to reduce your borrowing requirements for the new property. You can estimate the potential savings attributable to borrowing, say, €50K less using Karl Jeacle's mortgage calculator.