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Get small Mortgage or use Savings?
supersonicdave
Posts: 25 Forumite
Hi all,
My parents are looking to sell our house for £150K which they own outright, and buy a house for around £200K.
They have about 10 years before retirement and their current concern is whether to get a mortgage for the extra £50K or use the majority of their savings and buy the new house without a mortgage.
Obviously either way they will have a monthly payment to make (mortgage or re-building their savings), but they are unsure which will be more efficient? i.e. get a mortgage and keep hold of their savings, or use their savings and then re-save?
Any comments would be greatly appreciated.
My parents are looking to sell our house for £150K which they own outright, and buy a house for around £200K.
They have about 10 years before retirement and their current concern is whether to get a mortgage for the extra £50K or use the majority of their savings and buy the new house without a mortgage.
Obviously either way they will have a monthly payment to make (mortgage or re-building their savings), but they are unsure which will be more efficient? i.e. get a mortgage and keep hold of their savings, or use their savings and then re-save?
Any comments would be greatly appreciated.
0
Comments
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They could consider an offset style mortgage enabling them to access their savings if required but in the mean time paying no interest."I hear and I forget. I see and I remember. I do and I understand." — Confucius0
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For me they have to evaluate how much money they will have in their savings when they repay the mortgage, as the more money they have the more interest they earn, so taking a mortgage could cost less... Do the numbers.0
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