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Pay off or keep savings

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 


  • MorningcoffeeIV
    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.
  • Emmia
    Emmia Posts: 3,309 Forumite
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    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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