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Increasing deposit through ISA?
amanda_r_2
Posts: 10 Forumite
Hi,
My partner and I are considering buying a house for £230,000, through an inheritance we have £46,000 in savings that we intend to put down as 20% deposit for the property and get a mortgage on the remaining value.
Between us we have around £15,000 invested in cash ISAs and are planning to add our maximum allowance, around £5,700 each, when the new tax year comes round. This would leave us with £26,400 in ISAs.
Would we be better of taking the money out of the ISAs and adding the money to the deposit on the house to bring the mortgage down or is it advisable to maintain the ISAs?
Any help would be appreciated!
My partner and I are considering buying a house for £230,000, through an inheritance we have £46,000 in savings that we intend to put down as 20% deposit for the property and get a mortgage on the remaining value.
Between us we have around £15,000 invested in cash ISAs and are planning to add our maximum allowance, around £5,700 each, when the new tax year comes round. This would leave us with £26,400 in ISAs.
Would we be better of taking the money out of the ISAs and adding the money to the deposit on the house to bring the mortgage down or is it advisable to maintain the ISAs?
Any help would be appreciated!
0
Comments
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what interest rate will you be paying on the mortgage?
what interest rate will you earn on the ISA?
might you need access to the money as an emergency fund?
might you need access to the money later for kids school/university fees? house renovation? whatever?0 -
How about an offset mortgage?
Use the savings to reduce what you owe by placing it in a linked account and forego interest on the savings to reduce the interest payable on the debt.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for coming back to me!
The interest rate on the mortgage is around 4.7%
The ISA rate is around 3%
We have some other savings so it is unlikely we would need access to the money for emergencies etc0 -
Are you porting an existing rate to your new mortgage?
4.7% isn't particularly attractive at 80% loan to value.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
that extra £15k would take you to 75% LTV at which you can get much better rates, what is your credit history like?0
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kingstreet wrote: »Are you porting an existing rate to your new mortgage?
4.7% isn't particularly attractive at 80% loan to value.
No, I'm a FTB so this would be a new mortgage. Not 100% sure on the rates yet but that is what I have been quoted. My credit isn't excellent.0 -
Check and clean all your credit files, register to vote
http://www.moneysavingexpert.com/savings/pay-off-debts
http://www.moneysavingexpert.com/loans/credit-rating-credit-scoreDeclutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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