Mortgage Overpay Vs. Savings - Eyes of the Lender

Ryan_Holden

Hi All

First of all, let me just say that I recognise especially in these times that it is a privilege to be in the position to overpay a mortgage. I hope asking for opinions here does not make people believe I don't see that.

My situation is that I am able to make a sizeable monthly overpayment on my mortgage with a view to saving interest and reducing the term. But as we see savings rates rise, it's now at a point where a 5% savings account would actually provide a better return at the end of my fix period than simply overpaying. About £800 or so.

My question is, with a view to getting the best possible rate at mortgaging, would a lender view overpaying regularly any differently or preferentially to someone settling their mortgage with a savings lump? I.E. would they be more favourable to my re-mortgage application seeing that I'd been making regular monthly overpayments?

My gut is telling me probably not but I wanted to ask opinions on that.

Thanks a lot

Ryan

jimjames

Absolutely no difference. The balance for LTV at the point of remortgage is what matters, not how you got there

Ryan_Holden

And that's that. Thanks Jim.

I'll hold out for another rate rise and see what that does to savings accounts then I'll start a new one up.

Cheers.