Pay off or keep savings

Lynsey89Lynsey89 Forumite
144 Posts
Part of the Furniture 100 Posts Name Dropper
Anyone able to offer some advice.

We currently have a tracker mortgage at 4.6% with £77000 left on it for 14 years.
We are looking to move house asap but struggling to find a property.
We have savings off £71000 in a 3.25% account.

Should we put all that £71k into the mortgage to reduce our payments or keep it as savings to go towards a house deposit?

All views welcome, thanks 


  • MorningcoffeeIVMorningcoffeeIV Forumite
    593 Posts
    500 Posts Name Dropper
    You should pay it off the mortgage only because the rate is higher than your savings.

    It makes no difference to your using it as a deposit.

    But don't use it to reduce your payments unless you are in financial difficulty. Keep payments the same.
  • EmmiaEmmia Forumite
    1.9K Posts
    1,000 Posts Second Anniversary Photogenic Name Dropper
    I'd keep enough for 3-6 months expenses or to replace the boiler/car etc, if it went kaput and use the rest to pay down the mortgage, presuming you have no restrictions on overpayments etc.
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