Mortgage newbie question

daxu

Hello,

I am quite new here and just want to ask a question about mortgage.

I need to borrow 120000£ and have a deposite 30000£ there.

Is it better to put 3000£ of my deposite into ISA and borrow 123000£ instead?

For ISA I can get more than 5% interest and it is tax free. If I choose a discounted mortgage which has lower start rate (lower than 5% at least), then I can get more than put all my saving into the mortgage.

Is it right?

Many Thanks

Jerry

lisyloo

Hi Jerry,

Yes you are right.
The other thing to consider is that it's always a good idea to have some cash to hand in case of an emergency.

Joe_Bloggs

Where have you got your £30000 now! Savings in reserve are welcome for those unanticipated events that ones best laid plans seldom cater for.
I sound like Digging Out now! 'Nurse! where's me head medicine ?'
Good luck you should do fine. Income, existing debt and past credit history plus current expenditure are common factors that can be taken into account by mortgage lenders. A mortgage broker may be able to attain more for you than you could get on your own in certain circumstances.

J_B. (The right broker for you can do things in your interest .)