New Build and Deposit.

[Liz112]

So after searching for a house before Covid - and having no luck with all offers that we made. We finally decided to book new build house and need some advice on how much deposit should be put down. An ideal home would be a 1930's house with a large garden and has been impossible to get hold off.

Looking to buy with my partner. We have no children and no debt and are first time buyers.

The house is £500,000 and I am looking to put in at-least 25% deposit which is £125,000

I can stretch for around 35% deposit which is £175,000 or max out to 40% deposit as well. Maxing out but still keeping more than £30,000 Cash.

Most of the money is lying in Saving Bank and in Cash ISA which does not generate any income. Is it a good idea to max out as much as we can on the deposit ? Does it matter if the deposit is for a NewBuild?

Really unsure please any suggestions or advice will be helpful

I don't think the fact it's a new build makes any difference, but happy to be corrected. I think you want to be looking at what mortgage rates you'll get for different 'loan to values" to work out of its worth paying more into your deposit.

Agreed, look at what the return is before paying it all out.

We are buying a newbuild, have already sold our old house and are living in temporary accommodation for a few months (late parents home so rent-free).
Need a short-term mortgage to cover the difference between our funds and the asking price, was going to take some money out of fixed rate ISA's but when I saw the mortgage rate it made sense to borrow more and leave the ISA's well alone so that is what we are doing. With the sale of my parents house the mortgage will be paid off in a matter of months anyhow.