I am buying a house with a 200k downpayment and 170k mortgage. The rate with nationwide is 2.09% above base, currently 2.59%. This is available with LTV of 40% therefore I could get the same rate with less deposit and larger mortgage.
My question is that I've got 30k in cash ISA. Should I include this in the 200k deposit or keep it to retain the ISA allowance, making house deposit 170k and mortgage 200k.
A two year fixed cash ISA is currently almost exactly equivalent to the 2.59% payable on the mortgage.
Hopefully this is an interesting discussion point.
My question is that I've got 30k in cash ISA. Should I include this in the 200k deposit or keep it to retain the ISA allowance, making house deposit 170k and mortgage 200k.
A two year fixed cash ISA is currently almost exactly equivalent to the 2.59% payable on the mortgage.
Hopefully this is an interesting discussion point.