SMF - Just Installed!

Big deposit or smaller mortgage?

Started by Aynsley, July 06, 2015, 07:33:22 PM

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Aynsley

Hi there guys and girls, I currently rent out a property which is mine and live with my girlfriend in her house. We are hopefully going to buy a house together and rent out both hers and mine. So my question is, are we better saving and having a deposit for a new home or both paying more of our mortgages and having more equity on our current properties,to then release and use as a deposit. Hopefully I've not lost you in all this. Thanks in advance for any advice.

Aynsley

Riptide

You want to pay in money (equity) to release money (equity), seems strange.

Hippogriff

Better deposit for new purchase if it enables the best interest rate.

Aynsley

Thanks guys, I thought that might be the case. I'll keep saving then.

Hippogriff

I'd keep my finances separate from the girlfriend too... remember, the odds are against you when you think you'll be together forever.  :P