Mortgage Payment Question

jimmyg_73

After the sale of our house, we are approx £1600 short of putting down a 25% payment for our new house.

If we put down the money (from our savings) we will save approx £35 a month on our new mortgage over the next 2 years (its a base rate tracker) by getting a better interest rate.

Is it worth paying out of our savings to get a better rate or should we keep our savings?

JA1000

You will probably save more in mortgage payments than you would gain in the savings account interest, shouldn't be hesitating do it.

opinions4u

It depends on the rate, but is almost certainly going to be cheaper to have a smaller mortgage at a lower rate.

Key thing for me is that you retain some savings (3-6 months net pay) as a contingency fund if at all possible.