Offset/savings mortgage advice needed...

WONDERWOMAN

I need some advice....

I currently have a 115k mortgage and 60k in savings. I'm planning on a house extension in the next few months which will cost approx 60k.

So my options are to use the 60k of savings for the house extension but this leaves me with no emergency funds for rainy days or get an offset mortgage for 175k and sill have my 60k in savings.

I'm keen to hear your opinions, would you offset (or not), or use the savings, or maybe half and half?

Many thanks

GuidoT

I would put £40K into the extension and raise £20K elsewhere. No point in paying a premium associated with the interest on an offset mortgage when you nearly have sufficient funds, in particular as your savings rates are so low (and you probably get taxed at the source on the interest too).

I know it rains alot in this county but I think £60K to cover such is a bit generous.

Do not know where you are with LTV and income to comment on whether you would even get an mortgage up to £175K.

As an aside leave yourself £5K to £10K on top of your builders quotation to do the work as a contingency.