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Going to be getting a new mortgage and thinking of chucking 40k of savings (which is about 2 years of payments) at our remaining amount then go interest only for 2 years.
Ignoring any more exotic investments, you can get a guaranteed 5+% before tax in a 2 year fixed savings account: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings
Or 4.5% in a fixed 2 year ISA: https://www.moneysavingexpert.com/savings/best-cash-isa/#fixed (if you're a couple, then you can each put £20k into a cash ISA each tax year).
So the question then becomes one of whether the interest rate (and any fees) on the mortgage is high enough to justify kissing goodbye to that cash.
rhowe
Tell me if this is a terrible idea…
Going to be getting a new mortgage and thinking of chucking 40k of savings (which is about 2 years of payments) at our remaining amount then go interest only for 2 years.
Obs will able to save a fair amount over the next 2 years with small repayments and recoup quite a bit of that.