Hi, My wife (29F) and I (30M) are based in London and planning to start a family, max 1 child. We currently live in a flat with £170k equity, but we're looking to upgrade to a house in the £900k–£1m range.

- Income: £180–£210K combined.

- Liquid Assets: £100k ISA, £280k GIA.

- Current Equity: £170k.

We are wary of being "house-poor," so we’re considering a ~50% LTV (£500k deposit). Is it a typical/recommended? Please share ur exp.

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Recommend posting this in r/HENRYUK, people give good advice on these topics

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Given the income, how would you afford a deposit that large?

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I think M1 is suggesting he can’t quite comprehend where the £500k comes from for that TC - I imagine it’s bits of family low, investment growth, getting in early on property when interest rates were low.

OP - my view is yours might be able to stretch more and plenty do in your situation. Given stamp duty I would consider your next move to be something you could see being your last and if that means you needed to go up to £1.25million for something for life I’d probably do it, particularly given you’re so young.

Ps congrats, you’re in an incredibly fortunate position. I’m a couple of years older, have about £150k total saving/investment, with £110k salary, looking at properties around the £475k mark and there’s not a lot going!

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Congrats you are in a really good position. How much deposit you put down is really a question of risk appetite. The best financial answer is lower deposit and a larger mortgage you can afford with the surplus in the markets (preferably S&S ISA for the tax wrapper). Having said the above, when we bought our forever home, we did not do that and put around 45% down as we wanted a much lower monthly commitment.

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Why would you have max 1 child?

It’s more like “let’s have 1 and see how we cope”

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Impressive savings. How have you achieved that on your salaries? Guessing you had help with the flat to have built up that amount of equity too?

I think it’s brilliant what you have saved and even more so without any help!

If I were you I would keep the ISA locked in where it is, potentially earning 5-8% vs ~4% mortgage rates.

You will lose a chunk of your equity in paying the sale and purchase fees so top that up from your general investment account to make a decent deposit. I would put as much down as makes sense to get a decent interest rate (30% seems to be good).

Consider buying a fixer upper and using your cash to renovate. You will likely get a better deal on your property and can then renovate to your preferred specs. E.g. you could put £150k into a £750k home and turn it into £1m.

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