What should I do with my savings in the short-term?

leannecollingwood

I have £20k savings with half in an ISA and half in FD e-saver.  I will likely need to use most of this one way or another next year as planning to sell my flat and buy a house, so locking away the cash in a long-term bond etc. isn't an option.  I have already upped my mortgage overpayments. Twice.  Would it be better to pay-off a further chunk in order to reduce my LTV before remortgaging? What is the best use of this cash for the next 6-12 months?  It's gaining minimal interest in an ISA - is it just a case of living with a currently poor economy or does anyone have a better idea?

eskbanker

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/ summarises best easy access options, or premium bonds are also relatively attractive at the moment.  If your mortgage interest rate exceeds what you'd get on savings then paying more of it off would make sense if you can, at least for however much of that £20K will be spent on the new property.