Overpay mortgage or save more for deposit - House Move

[Gary29]

Sorry for this simple question, but I'm looking to move to a more expensive house in around 12 months and would like some peace of mind and sanity preservation.

I've been over paying my mortgage by the maximum allowed before penalties for the past couple of years, but this is making slow progress of trying to save up a decent cash deposit at the same time.

I'm just trying to work out the implications (if any) of having a smaller cash deposit?

I have decent LTV in the current house as I was a FTB living with parents and managed to save up a hefty deposit for that.

Thanks for reading.

[Sarnie]

Assuming you will be selling the current property, you'll be in receipt of the equity in the current property in addition to your cash savings, to fund the deposit of the onward purchase??

[Gary29]

Yes, all proceeds from sale of current house will be going to fund the new one, all owned by me, no other parties to consider.

I just keep over paying the mortgage to save on interest charges and stop over thinking it don't I?

[Fonzey]

The overpayments won't be "available to you" until you complete on a sale/purchase. If you require other funds for the sale such as stamp duty, legal/broker fees, moving costs and/or furniture - then perhaps there's merit in stopping the overpayments for a while and adding them to savings. Long term you'll always be better overpaying a mortgage due to the interest situation - but in a 12month window, having available cash may be preferred.

[Sarnie]

Gary29 said:

Yes, all proceeds from sale of current house will be going to fund the new one, all owned by me, no other parties to consider.

I just keep over paying the mortgage to save on interest charges and stop over thinking it don't I?

Yes

It's all cash when it comes down to it.......doesn't matter at all how much comes from equity or savings......

[Gary29]

Fonzey said:

The overpayments won't be "available to you" until you complete on a sale/purchase. If you require other funds for the sale such as stamp duty, legal/broker fees, moving costs and/or furniture - then perhaps there's merit in stopping the overpayments for a while and adding them to savings. Long term you'll always be better overpaying a mortgage due to the interest situation - but in a 12month window, having available cash may be preferred.

Thanks, there is a fairly decent chunk of cash available to cover that in the pot I've got saved, it's definitely worth me considering though.