We are currently on a 2.59% mortgage and have £80k of cash savings ready to build an extension which we plan to start after we have remortgaged next June (we don't need to borrow more). I have been mulling temporarily using £17k of the extension fund to pay-off part of the existing mortgage (maximum lump sum allowed) and get a notional 2.59% return on the savings for a few months, but then we would have to remortgage it out again. Is it a better idea to forget this plan and instead go into the remortgaging with our existing loan amount?
Thanks.
Got a credit card? use our Credit Card & Finance Calculators
Thanks to eyeball08,Wondergirly,bofh,johnstevens77,Bhoddhisatva, for Donating to support the site
Temporary repayment before remortgaging
-
- Lemon Slice
- Posts: 628
- Joined: January 27th, 2017, 9:31 pm
- Has thanked: 1152 times
- Been thanked: 283 times
-
- Lemon Slice
- Posts: 481
- Joined: May 11th, 2017, 8:33 pm
- Has thanked: 91 times
- Been thanked: 207 times
Re: Temporary repayment before remortgaging
My take is that as mortgage rates are starting to rise you will have to pay a bit more to re-mortgage thus losing any benefit gained on the interest over a few months.
You'd make about £36.70 per month gross but if you left it on instant access you'd get say £17 per month so you have to weigh up the risk for a net £20-ish per month.
For three months you'd make £60, is it worth it?
You'd make about £36.70 per month gross but if you left it on instant access you'd get say £17 per month so you have to weigh up the risk for a net £20-ish per month.
For three months you'd make £60, is it worth it?
-
- Lemon Slice
- Posts: 628
- Joined: January 27th, 2017, 9:31 pm
- Has thanked: 1152 times
- Been thanked: 283 times
Who is online
Users browsing this forum: No registered users and 28 guests