Building a House Mortgage or Savings

lamby29

Hi
I was wondering if someone could give me some advice.
Im building a house at the end of the year
Im expecting the cost to be around £180000
I have around £50000 saved in ISAs etc
I am tring to decide if i should leave this invested or use it to build my house and have a smaller mortgage.
I was thinking the money would be better left invested in stock market or buy to let maybe.
Or maybe some sort of offset mortgage
Any advice much appreciated.

CC20131986

It depends on your cicumstances and your outlook to any potential risk.

Currently ISAs will give you approx. 2-3%, similar to many mortgage rates. However the likelihood is over the next 2-3 years the interest rate will rise. If you think this will happen then you are better having a small as possible mortgage.

At the same time if mortgage rates tend to rise, savings rates generally fall in order to stimulate growth in the economy i.e. to get people spending rather than saving.

Without knowing your circumstances its hard to say, but personally I would rather have a smaller mortgage due to the potential rate rises in the next few years, unless you can now get a longer term mortgage with a rate you are happy with.