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

w00519772

My fixed rate mortgage is due to expire at the end of March. This is the first time I will switch to another deal (either with the current provide or with a new provider - not decided yet). I asked this question last month in the wrong forum: https://forums.moneysavingexpert.com/discussion/5944876/is-there-any-benefit-holding-cash-rather-than-equity-when-switching. I am now going to answer it in the correct forum.

I am thinking about making a mortgage over payment now.

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? For example, do some deals say you must pay part of the deposit in cash etc?

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

[Deleted User]

It makes no difference as the amount you want to borrow remains unchanged.

You can make up the difference in equity, cash, or jelly beans*.

*Jelly beans are unlikely to be accepted as legal tender by most lenders.

getmore4less

Make sure you have enough cash to cover costs/fees that cannot be added.