remortgage - pay lump sum off old mortgage vs larger new mortgage

loochie

Hi,

I'm looking to move house some time this year, and am wondering if I should pay a lump sum towards my current mortgage, or use that money towards reducing the amount on the new mortgage.

- I currently have around £150k @ 2.59% on current mortgage
- I will likely need a new mortgage around £375k @ 0.99%
- I have the funds put aside for the required 10% deposit on new house
- I then have around £30k I can either use as a lump sum towards the current mortgage, or add to my equity for the new mortgage

I've been struggling to work out the maths on this to see which would be more beneficial.

Would someone care to offer their views?

bunty109

Will you be keeping the existing mortgage when you buy the new property? Surely the money is better being paid off of that as it's a higher interest rate?