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Mortgages
jacksmith93
Posts: 12 Forumite
Hello, I was wondering if someone could help with the following conundrum. I have a house, but need to buy a bigger one. My mortgage interest rate is 1.49% and I'll need a larger deposit for my next one. I've currently got my money invested but I'm phasing it to cash as the purchase is likely to be within the next 6 months.
If I make an overpayment on the mortgages and get an effective rate of 1.49% with this money( I've checked there are no penalties), will I be able to use all of this money towards the purchase of my next home, to pay solicitors, to pay SDLT etc? or will I need to find any cash for professional fees and tax?
PS please don't tell me about savings account with higher rates.
Thanks,
Jack
If I make an overpayment on the mortgages and get an effective rate of 1.49% with this money( I've checked there are no penalties), will I be able to use all of this money towards the purchase of my next home, to pay solicitors, to pay SDLT etc? or will I need to find any cash for professional fees and tax?
PS please don't tell me about savings account with higher rates.
Thanks,
Jack
0
Comments
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Overpyaying your mortgage creates more equity in your home, which when you sell and your smaller mortgage is repaid, means more "deposit" so more of your new home belongs to you.
If you saved it separately and put it in the pot for the purchase in cash, the same would result.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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