Bonus: Use to pay mortgage or deposit for move??

doberman100

I'm getting a bonus from work, and am planning to move next year. So the question is - is there more value in a big overpayment on my mortgage OR saving the cash to go towards a deposit when I move?

I have no idea which idea is better. Any suggestions?

Ta

getmore4less

If you have a good rate then keeping the mortgage to port to the new property is likely to tbe the best option, reduced extra barrooing.


If the rate is not that goodthen paying off a lump sum will be benifitial but are there any penalties for overpayments.

doberman100

I'm on variable at the moment (fixed expired just as rates were plummetting, fortunately), so the rate is low. So you reckon I should use the bonus for deposit?

Wh05apk

The end result will be the same, assuming you are selling your existing property to act as the deposit?

Given that rates on savings are less than mortgage rates, then I would recommend repaying, assuming you do not have any other loans?

getmore4less

doberman100 wrote: »

I'm on variable at the moment (fixed expired just as rates were plummetting, fortunately), so the rate is low. So you reckon I should use the bonus for deposit?

You need to look at how low compared to curent savings rates AND new lending when you move

Is the deal portable how much will you need to borrow to move.

the options will be port and top up(same lender) or new lending

depends which gives the best deal