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Savings v Mortgage
ricey420
Posts: 33 Forumite
Hi folks,
A dumb question, and hopefully one that hasn't been asked too many times before!
I know as a general rule of thumb, if a savings account rate is higher than a mortgage rate then you should stash it in your savings.
Does this same rule apply though when taking out a new mortgage?
E.g., my regular savings account pays 5% and I have a few thousand in there. My mortgage rate is 2.57% though.
So, should I put my savings down towards the deposit or leave it accruing interest? (Purely from a financial point of view, not the morality of having a rainy day fund etc)
Thanks :beer:
A dumb question, and hopefully one that hasn't been asked too many times before!
I know as a general rule of thumb, if a savings account rate is higher than a mortgage rate then you should stash it in your savings.
Does this same rule apply though when taking out a new mortgage?
E.g., my regular savings account pays 5% and I have a few thousand in there. My mortgage rate is 2.57% though.
So, should I put my savings down towards the deposit or leave it accruing interest? (Purely from a financial point of view, not the morality of having a rainy day fund etc)
Thanks :beer:
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