Should I buy a home with smaller deposit and keep some 貯金? DAVID HOLLINGWORTH replies

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Is it better to 支払う／賃金 as large a deposit as possible upfront to 減ずる the size of the mortgage, or to use a smaller deposit??

I know that larger the deposit, the lower the 貸付金 to value 割合, so you often get a better 率 on the mortgage.?

However, with 率s still 存在 比較して high, even the わずかに lower 率 申し込む／申し出d by a five-year 直す／買収する，八百長をするd 率 doesn't seem all that 控訴，上告ing.?

The 高金利s on 貯金 (5.2 pr cent) gets 相殺する by the higher 利益／興味 率 on the mortgage (5.4 per cent) without factoring the 税金 on the 貯金 利益／興味.

Mortgage help: Our new 週刊誌 N avigate the Mortgage Maze column 星／主役にするs 仲買人 David Hollingworth answering your questions.

Two シナリオs I'm kicking around:

1) Buy a house valued at £120,000. 支払う／賃金 a £30,000 最小限 deposit or £65,000 deposit

Or

2) Buy a house valued at £140,000. 支払う／賃金 £50,000 最小限 deposit 要求するd, or 増加する it to £65,000?

SCROLL DOWN TO FIND OUT HOW TO ASK DAVID YOUR MORTGAGE QUESTION

David Hollingworth replies:?Managing a mortgage effectivel y should be about getting the best value throughout the life of the 貸付金.?

If you can make the life of that mortgage as short as possible and keep the 利益／興味 率 payable as low as you can without 課すing any 極端に 制限する 条件s, you will have done 井戸／弁護士席.

The 初期の starting point will therefore usually be that having a smaller mortgage will help you get off on the 権利 foot.?

There's a number of 推論する／理由s why that is likely to be the 権利 approach for you but there are also some important caveats and 代案／選択肢s.

Why does 貸付金-to-value (LTV) 事柄?

At one time, mortgage 貸す人s would tend to 申し込む／申し出 only a small choice of different 取引，協定s with many 申し込む／申し出ing a 選び出す／独身 率 all the way up to 95 per cent of the 所有物／資産／財産 value.?

Now, 貸す人s have a multitude of different 率, 料金 and incentive combinations.

The 現在の market 分裂（する）s the 率s 利用できる into an array of LTV bandings and the very best mortgage 率s are on 申し込む／申し出 to those with the biggest deposits.?

The keenest 率s will typically be for those with at least 40 per cent of the 購入（する） price to put 負かす／撃墜する.?

率s will then step up 徐々に as the deposit 増加するs with those with the smallest deposits of 5 per cent 直面するing higher 利益／興味 率s.

As you've identified, 減ずるing the deposit size could therefore have a detrimental 衝撃 on your mortgage 率, 同様に as meaning a bigger 月毎の mortgage かかわり合い.?

However, the 人物／姿／数字s that you are 提案するing are at worst an LTV of 75 per cent. That could typically see a 比較して small 攻撃する，衝突する to mortgage 率s compared to the lowest LTV bandings.

> Check your 貸付金-to-value and the best mortgage 率s at that level

Why might you be thinking of taking a bigger mortgage?

The question of taking a bigger mortgage in a higher 率 環境 is no 疑問 刺激するd by the fact that 貯金 率s can 現在／一般に be higher than some mortgage 率s.?

If you compare like-for-like two or five year 直す／買収する，八百長をするd 率s, the 率s 利用できる on the best 貯金 accounts are higher than those on the lowest mortgage 取引，協定s.?

If you could earn more in 利益／興味 on your 貯金 than the mortgage would cost you it would seem to make your money work harder.

However, there could be 税金 to 支払う／賃金 on 貯金 利益／興味 income which will quickly erode the return.?

The personal 貯金 allowance gives some 衝撃を和らげるもの but the bigger sums you are considering would tip over those 限界s, 特に if you have other 貯金.

That will quickly make the return look lower than the mortgage 率, 特に when you take account of the 料金s that may come with the lowest mortgage 率s.?

For example, the highest five-year 直す／買収する，八百長をするd 率 社債s are 支払う／賃金ing around 4.5 per cent, わずかに higher than a five-year 直す／買収する，八百長をするd 率 mortgage of around 4.35 per cent to 75 per cent LTV.?

However, take account of basic 率 税金 and you'd need to earn 5.44 per cent 甚だしい／１２ダース just to equate to the 率 you will 支払う／賃金 on the mortgage.

> Check the best 貯金 率s in our 独立した・無所属 （米）棚上げする／（英）提議するs?

Take account of 料金s

When you're considering the 親族 mortgage 率s to compare with 貯金 don't forget to factor in 料金s.?

The size of mortgage that you are considering will see the typical 協定 料金s of £999 追加する a chunk of cost that may be best 避けるd.?

Better value may be 設立する in a no 料金 取引，協定 but that will see the 率 辛勝する／優位 up a little その上の.

接近 to 貯金

It's always important to have 平易な 接近 to cash 貯金. Buying a new 所有物／資産／財産 could bring 予期しない expenses, so you need an 緊急 基金 even more.?

It would not be sensible to put every last penny into the deposit and other 購入（する）ing costs.

One 代案／選択肢 that could help 保持する 接近 to cash without incurring 利益／興味 could be an 相殺する mortgage.?

This means that you can draw on the cash if 要求するd but the 貯金 balance 減ずるs the 利益／興味 payable on your mortgage, 避けるing any 税金 as no 利益／興味 is paid.?

The downside is that 相殺する 率s will be higher than a 伝統的な mortgage, so you will need to 重さを計る up how important that 相殺する functionality would be.

In 結論, although there will be 推論する／理由s to 保持する some 貯金, the 利益s of a smaller mortgage are likely to 勝利，勝つ out once all the above is taken into account.