Property News · December 22, 2016

Should we dip into our savings to reduce our mortgage?


We need to remortgage in a few months and wonder if it’s best to lower the amount we need to borrow Q We are looking to move up the housing ladder and have managed to save £60,000. However, we are struggling to find a house we like so it may be another year or two before we move. The issue is that we are coming out of our five-year fixed rate on our current mortgage in April and all the numbers suggest that it would be better to remortgage than stay on the lender’s standard rate. Is it best to use some of our savings (maybe £20,000-£30,000) to lower our remortgage or keep the money until we amend our mortgage for the new house?I am just confused if lowering our current mortgage is the same as having more equity for our new house. My gut says lowering the current mortgage is best overall with the reduction in debt and interest paid, but I am worried I am mixing it up and all the other advice out there doesn’t seem to cover this area. SJ Continue reading…

Source : theguardian.com
Read more…Should we dip into our savings to reduce our mortgage?

You may also like...