Use all of deposit on house purchase or hold some back for renovations?

[Theconifers25]

we have found a lovely house to buy and our offer has been accepted.

We’ve accepted an offer on ours which means when sold we will have £250,000 deposit to put towards purchase of new house.

I’ve identified renovations I would like to make in new property and costed them at approx £30,000.

Would like options on whether anyone would keep 30000 of the deposit back obviously leading to bigger mortgage.

If I keep back 30000 instead of throwing the whole 250,000 towards the purchase price my monthly payments on mortgage rate we would be getting at moment would be approx £120 more a month.

This is comfortably affordable but don’t know what interest rates will be in future and finances may be different if have children.

I think the alternative would be do it/save as we we go along through the years though did that in my current property which was thoroughly frustrating plus had loan from parents.

I don’t know if it’s insane to elect to have a mortgage of more than 30 grand than is necessary.
I know the renovations would bring we a lot of joy however.

Any experience of this type of thing or any opinions please great people of mumsnet?

We are in similar situation and i am thinking of keeping money towards renovations and taking higher mortgage. You can repay more towards mortgage as and when you save in future.

We're in a similar position and are opting for the higher mortgage. You can always overpay if you change your mind.

We took the higher mortgage. It's not often you have a chunk of capital to do major refurbishments. Once we're done in a few years we'll look at overpaying

I did this & held back money for renovations. I was down sizing after my marriage breakdown & found a house that I adored but needed a lot of work.
My mortgage is still very small really, so I wasn’t stretching myself financially & I was very aware that I was on my own & it wouldn’t have been possible for me to save for the work that was essiential.

I am slightly overpaying monthly now.

We did this and kept a similar amount back for renovations. It was definitely worth it imo as we did all the work in one go and 6 months after completion had the house we wanted. We can now overpay on our mortgage and enjoy the house for the maximum time.

I would recommend you actually keep more than the £30k back, at least £40k or maybe £50k. The renovations are bound to cost you more than you think.

As PP have said you can overpay the mortgage by (usually) up to 10% a year without penalty so once you've completed the work you can always make overpayments.

Thanks everyone. Mixed bag of responses as there have been with people I have spoken to IRL.

I’ve decided to keep £30,000 of the deposit and overpay the mortgage and make hay whilst the sun shines financially. We’re good place earning and and outcome wise and I can’t wait another x amount of years for the house to be as I want it to be.