Mortgage deposit/equity question

[rufusgti]

Hi
I'm just after a bit of advice.

I'm not looking to move house right now, but know I will within the next few years. In the meantime I will be adding to my savings to lower the extra amount I'll need to borrow.

I'm wondering wether it would be best to pay off as much of my current mortgage as possible over the next few years to raise my equity. Or save up a chunk of savings. I know it's the same in terms of future borrowing, but do the mortgage lenders prefer to see savings, do they care if all the deposit comes from equity.

Right now I'm not getting much in the way of interest and am obviously paying interest on my current mortgage so it makes financial sense to pay down. But don't want to run into any problems if and when I do spot a house.

[paulrockliffe]

Equity is savings. Can't see it making a difference, except that the higher your equity, the lower your interest, the quicker your equity accumulates.

[Sarnie]

Having the money in savings rather than equity means that you may have the chance to buy a property if it comes along before you can sell your own property, allowing you to Let-to-buy the current property (assuming an LTV of sub 75%).......