advice on save vs pay off more mortgage to get better deal

brighte_2

Hi everyone
looking for some advice. current mortgage deal is running out, and worked out that if I pay in £14k Ill get the LTV to 75% & therefore looks like there are better deals. BUT I dont know if its better to do this, or to put the money into ISA & savings & just go with a normal 90%LTV mortgage

suggestions gratefully received

emma2009_2

i personally would pay the 14k and get a 75% ltv rate. the rates are soooooo much better than the 90% mortgages, and the poor interest rates on savings mean you wouldnt get much if you left the money in savings.

alternatively if you did want to leave some in savings go for an 80% ltv and put 5% in savings....best of both

beecher

Just be sure that your figures are accurate - would be nothing worse than overpaying your mortgage by that amount and finding out you were still above 75% LTV. Work out what different deals you'd get, and how much you'd save, and compare to the interest you'd get on your savings.

Thrugelmir

brighte wrote: »

Hi everyone
looking for some advice. current mortgage deal is running out, and worked out that if I pay in £14k Ill get the LTV to 75% & therefore looks like there are better deals. BUT I dont know if its better to do this, or to put the money into ISA & savings & just go with a normal 90%LTV mortgage

suggestions gratefully received

Whats rate are you earning on your savings compared to the rate you are paying on your mortgage?

getmore4less

brighte wrote: »

Hi everyone
looking for some advice. current mortgage deal is running out, and worked out that if I pay in £14k Ill get the LTV to 75% & therefore looks like there are better deals. BUT I dont know if its better to do this, or to put the money into ISA & savings & just go with a normal 90%LTV mortgage

suggestions gratefully received

You don't have to pay it in before you apply.

Check the deals and find out exacly how much you need to fund to get a better deal and only pay it when you change if you need to.