Larger deposit or small deposit with pcp

[Mumto21234]

I have a car on pcp, and i am in the process of looking at buying a house. I am finding mixed info on what would be best - having a larger deposit but with an ongoing pcp deal, or paying off pcp and having a smaller deposit.

Pcp deal is around 12% of my take home pay each month and I also have 2 young kids, but no fees associated with them. Will be a single applicant.

Hope someone can help!

It depends how much larger deposit is really. If it would be large enough to bump you into a better interest rate for your mortgage (e.g. some lenders have better rates for 85% mortgages rather than 95%) it might be worth having the larger deposit. If the larger deposit wouldn’t be the difference between say 5% and 10% though then in terms of interest rate it wouldn’t make much difference if any but a 12% of your income payment will impact affordability calculations.

@Jellybunny56 the deposit could take me in to lower ltv %. Could possibly change from around 87% to 83/84%