What is the best thing to do in this scenario? (Financial!)

[Yuoiuyi]

I want to buy a house that is likely going to be around 200k more than my current home when I come to purchase it in a year or so (not a specific house, a type of house in a particular area).

I owe 210k on my mortgage already. I have saved 88k towards the extra 200k needed to buy the next home. Is it better to continue saving in cash (in a savings account) and then just moving my mortgage to the next house (it’s portable), or is it better to try and reduce this mortgage now and then borrow the circa extra 200k when it comes to it in the next year or so?

Hopefully that makes sense. It’s making my head spin!

At least 10k of your savings will got to moving costs.

Will you have early repayment charges?

how much additional money does your salary allow you to borrow?

what does the additional money do to your LTV and how will it change the interest rate?

@Wolfpa no EPC. I can borrow the extra I’m just trying to work out whether to pay off the current mortgage or save separately so I don’t have to extend the mortgage at all

Would you be able to pay off that much of your mortgage currently? Mine only allows me to pay off an additional 10% per year.

if there are no early repayment fees on the mortgage, it is probably best to put 75% of your savings into reducing the current mortgage. Because then you save on interest payments and/or reduce the loan faster. Especially if the next move ends up taking more than 1 year

But keep a healthy savings balance to fund your move too.

presumably if your mortgage is say 4% and your savings attract 1% interest then you’d be better increasing the mortgage payments as it’s costing more than youre making?

Are you earning more in interest on your savings than you're losing in interest on your mortgage?

Remember you'll need to find your stamp duty too- but agree that if your mortgage rate is more than your savings rate (likely) then reduce the mortgage balance currently but keeping some cash aside for moving and stamp.

Have you looked into an offset mortgage? The £88k could be working to reduce your mortgage interest, while still staying available to you in case of emergencies, or to pay the stamp duty etc when you eventually do repurchase.