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Interest on savings to pay mortgage??
picopooki
Posts: 1 Newbie
Hi
We are down sizing and buying 2 smaller properties (1 to live in and 1 to renovate and sell)
We have £110 draw down on our mortgage for the first house which we will be using to part fund the second house.
On completion of the first house we have the spare £110. Should we let the mortgag company keep it. therefore our mortgage would be £199 or should we put it into instant access savings and use the interest to pay the additional mortgage. The mortgage rate is 4.5% and the savings 6.0%. Does this work?
Best Wishes
Claire
We are down sizing and buying 2 smaller properties (1 to live in and 1 to renovate and sell)
We have £110 draw down on our mortgage for the first house which we will be using to part fund the second house.
On completion of the first house we have the spare £110. Should we let the mortgag company keep it. therefore our mortgage would be £199 or should we put it into instant access savings and use the interest to pay the additional mortgage. The mortgage rate is 4.5% and the savings 6.0%. Does this work?
Best Wishes
Claire
0
Comments
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You need to take into account tax on your savings, so it depends on those calculations, depending upon your tax status.Debbie0
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