remortgage - put cash into mortgage or some into savings?

Put it into a mortgage you can get it back out of again. that way you get max return on your investment with minimum risk.

Possibly, but it sounds not too bad. The fee is a bit of a sticking point, and you need to relate it to the size of the loan. If it's for £50k, then £350 represents 0.35%, if you're looking at a 2 year time frame. In other words, comparing this deal with others, it's worth about the same as a 4.89% deal with no fee.

The simple rule is that putting cash into a mortgage account is worth the same as putting cash into a savings account which pays out a *net* rate of interest equal to the mortgage interest rate.

The only difference is that with the deposit you're earning more money in credit interest while with the mortgage you're paying out less money in debit interest.

So if you can find a cash ISA which pays more than 4.54%, that would in theory be better. But you can't put £12k into an ISA, only £3k. The best non-ISA deposit rate available these days appears to be about

Seriously, though, unless you're thinking of remortgaging again as soon as the two years are up, you'll be looking at the interest rate going up, and then it'll really pay to have a smaller loan balance.

It depends... I'm no FA.. but depending on your circumstances/mortgage;

If you don't have an emergency account.. I'd put part in a high interest account (or use 3k for this years's isa allowance if you haven't already) with resaonable access incase you need it... As to how much you need for an emergency budget.. thats upto you.

The rest (unless you can find an account which pays better than 4.54% AFTER tax.. which is difficult if your into the 40% tax bracket), I'd over pay on the mortgage (check any terms and conditions tho).

Pretty difficult even in the 20% bracket, wouldn't you say?

I hadn't worked out the figures until just now..

To get ~4.54%.. if you pay;

The best easy access rate I found on a quick search of moneysupermarket.com was Cahoot (Introductory Rate Savings Account) at

Thank you all for replying.

As to why I posted this:

Think I'll go Nationwide and bung all £12k in - after all it's only for 2 years.

Get a flexible mortgage - one that you can over pay without penalty but also withdraw oevr payments. Then make a £12k overpayment. It will then be available for you to take out again at any time.