Invest Unlocked House Cash Into New Home or Keep For Savings

TheAfterman

Hi all,

Long story short, I have found myself in the admirable position of unlocking quite a bit of cash from the sale of our current house (tens of thousands of pounds).

We are buying another property, but our deposit amount is well within the 25-40% LTV that the mortgage company wants to give us a particular interest rate.

Now I'm wondering whether the better strategy is to sink the max money into the deposit for the new house, or pay the minimum deposit to get that interest rate and keep the money in a savings account or even invest it elsewhere.

Obviously there a trade off between my monthly mortgage payments, but apart from that is one option a better idea than the other? The housing market looks like it's likely going to slow or stagnate for a while so maybe putting all my money into the deposit isn't the best idea?

Thanks in advance all.

AnotherJoe

And your ages, whether high rate taxpayers, and pension positions.

ReadingTim

• If the interest rate on your mortgage is higher than the rate you get on your savings, put it into the mortgage.
  
• If the interest rate on your mortgage is lower than the rate you get on your savings, put it into the mortgage.
  
• Investments can go down as well as up. Only invest what you can afford to lose.

It probably depends on how many tens of thousands of pounds you have. Read this for "should I overpay my mortgage?" and this about savings more generally.

TheAfterman

Thanks ReadingTim. That's basically all I wanted to know. Obvs I would have given interest rates if I'd realised it was relevant but that's why I'm asking a question not giving an answer!