Reducing negative equity risk

hyposmurf

Is it possible to once your property has been bought?Ive been paying my mortgage for 2.5 yrs and have made a some overpayments to bring the overall size of my mortgage down.I have paid off £11500 of my £71500 mortgage.My mortgage rate is 4.79% but I can make more money from savings accounts,so makes less sense to make overpayments.
Would decreasing my mortgage increase the chance of me being able to resell in a couple of years if negative equity were to take place.Or would I be better off to keep saving my cash and using this as a deposit?

Im also at loss to be able to estimate how much equity I will be able to carry over to my next property.Will be less or more than I have paid into my mortgage over the few years.So Im totally lost as to how much I need to save to upsize.Difficult question top answer I know. :-)

lisyloo

Would decreasing my mortgage increase the chance of me being able to resell in a couple of years if negative equity were to take place

Yes.

Or would I be better off to keep saving my cash and using this as a deposit?

As far as moving or mortgage deals are concerned it doesn't matter where the money is, the important thing is that you are saving it.

You might get the best returns, accessibility and longest tax free wrapper (currently life) with a cash ISA.

The when you move or remortgage, the money is availble if required.
It's also avaialble in an emergency.

Difficult question top answer I know. :-)

It's not possible withough estimating the cost of your new property.
Your limit will be what lenders are offering.
So, lets say you need 10% for a deposit then you'll need 10% of the new price plus any costs e.g. stamp duty, legal feee, mortgage fees, removals, curtains etc.
There are some costs as well as the deposit.