Is there any benefit holding cash rather than equity when switching?

w00519772

I am thinking about making a mortgage overpayment. My five year mortgage term ends later this year.

Is there any benefit keeping the cash rather than increasing the equity I have in the house?

If a mortgage product I want to switch to requires 60% equity and I hold 65%, then I guess I have enough to switch. Is there any benefit holding cash rather than equity?

I don't believe there is any benefit. However, I have never switched before so wanted to make sure there are no edge cases.

TadleyBaggie

Wrong forum? Try the Mortgage one.

agrinnall

Wrong board.

ACG

Wrong board but to answer your question, it will depend on the rate of the mortgage and the rate you can get by having the money in savings and whether the difference is worth the hassle.