We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Want to become a Forum Ambassador? Visit the Community Noticeboard for details on how to apply
Mortgage Deposit or ISA ???
nirish
Posts: 307 Forumite
I am buying a house with a 200k downpayment and 170k mortgage. The rate with nationwide is 2.09% above base, currently 2.59%. This is available with LTV of 40% therefore I could get the same rate with less deposit and larger mortgage.
My question is that I've got 30k in cash ISA. Should I include this in the 200k deposit or keep it to retain the ISA allowance, making house deposit 170k and mortgage 200k.
A two year fixed cash ISA is currently almost exactly equivalent to the 2.59% payable on the mortgage.
Hopefully this is an interesting discussion point.
My question is that I've got 30k in cash ISA. Should I include this in the 200k deposit or keep it to retain the ISA allowance, making house deposit 170k and mortgage 200k.
A two year fixed cash ISA is currently almost exactly equivalent to the 2.59% payable on the mortgage.
Hopefully this is an interesting discussion point.
0
Comments
-
The obvious downside is that if base rate increases in the next 2 years then your savings are tied in.0
-
Perhaps I should just prioritise the mortgage and build up some reserves again starting with this years ISA0
-
Did you look at an offset mortgage?:j Trytryagain FLYLADY - SAYE £700 each month Premium Bonds £713 Mortgage Was £100,000@20/6/08 now zilch 21/4/15:beer: WTL - 52 (I'll do it 4 MUM)0
-
Yeah I had a look but the rates were higher so opted for a tracker which allows unlimited over payments instead.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.5K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards