lump sum - advice please?

johnn_2

hi, new to the board just looking peoples opinions...

bought a house in the summer, part of which was financed by an interest only mortgage (58k). we now have the 55k to clear most of this mortgage as my other half has received her share from the sale of her fathers house (didnt sell for as much as we'd hoped!)

.....we plan to borrow some money to extened our house in a couple of years (approx 20k),
- so would we be better of keeping 20k back and investing it, or sould we just pay the interest only mortgage off and reborrow the money when we need it?

we own half the equity in our house, so pretty sure prices wouldnt fall that much to prevent us form doing that.

any thoughts?
ta
johnn