Advice on saving for deposit

Blackcat29

Hi. Not sure if this is the best place to post but we have put our house on the market and have had confirmation that we can get a new 80% mortgage.

IF my house sells for what I'm hoping I will have enough for the deposit but need to do a bit of saving between now and selling in case I have to accept a lower offer.

My question is: am I better putting money in a savings account (hoping we will sell within 6mths) or would it be better to make higher payments to my mortgage to increase the equity?

I believe that if I increase my payment the mortgage company don't charge me but they definitely charge an admin fee if I make an additional payment.

Thanks

CLAPTON

general advice is that it depends upon the interest rate

if your savings pay more than your mortgage then save otherwise pay off the mortgage

if there are fees then that needs factoring in

however if you are both buying and selling you may need the deposit for the new property (on exchange of contracts) before you get the money for the old (upon conpletion).

so maybe cash is king

G_M

bear i mind your savings account will deduct tax from the interest you earn, so ompare the NET interest rate you earn on savings against the interest rate you pay on your mortgage.

But frankly, over 6 months, it will make little difference so I'd keep it in savings so as to have it available.