Pay cash or get mortgage for part?

Zipppy

If...if..you were in a position to buy a house outright with cash (incl doing it up) although you would be stoney broke afterwards, would that be preferable to getting a mortgage for say half the value and investing the remaining cash.

I feel all cash would protect you from interest rate rises etc

Thoughts

djimi

I dont see how leaving yourself flat broke is a good option tbh. Why not take out a small mortgage (say 30% or something) and leave yourself some breathing room?

RoverZT

I would put the cash in a deposit account and use the interest to pay off some of the mortgage.

That way you keep the cash and have half your mortgage payed

A flight to Germany with ryanair, open fixed term deposit account say 150k at 3.75% - dirt leaves you 4k a year after dirt.

That's 333 euro a month off your mortgage and add in mortgage interest relief and all those things, your laughing.

150k mortgages can be had for around 600 euro a month over 35 years.

Wudyaquit

You could potentially get a better deal on a house if you were willing to pay cash and the buyer needed a quick sale. Waiting for a mortgage puts you into a bigger pool of buyers.

RoverZT

Wudyaquit wrote: »

You could potentially get a better deal on a house if you were willing to pay cash and the buyer needed a quick sale. Waiting for a mortgage puts you into a bigger pool of buyers.

If you had the cash in a bank account, you wouldn't be waiting too long.