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Is there any benefit holding cash rather than equity when switching?
w00519772
Posts: 1,297 Forumite
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.
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.
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Comments
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Wrong forum? Try the Mortgage one.0
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Wrong board.0
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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.I am a Mortgage AdviserYou 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.0
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