House Purchase Funding, what would you do?

citizenfish

I am buying a 2nd home for £150k

I have flexible mortgage on current home paid off completely with interest rate of 1.5% above base

Also have a set of funds in a wealth management portfolio with £150k available

Funds look dire at the moment. They are spread to minimise risk but are 2k down on beginning of month.

Instinct says to use flexible mortgage to fund 2nd home hoping funds will recover. I could also spread risk across both (£75k mortgage, £75k funds).

Interested in any views given I cannot see a recovery of funds in short term

Let_Us_See

A clear assessment of your options.

Mortgage borrowing at base + 1.50% is very competitive, however if your portfolio is not showing any growth then I would seriously consider this route of finance.

No mention of the funds you have invested in or any expected future growth. Have a word with your adviser to gauge if your funds have suffered purely due to economic downturn or for a specific reason. Carefully, check all 'exit' fees and associated costs. Once you have all information you can make informed choice.

Meeper

I expect that the portfolio of funds was done as a long-term thing. Your investment currently hasn't lost anything, it only loses money when you crystallise the loss and withdraw the funds.

Borrowing at base + 1.5% is cheap, that should be your option, provided the structure of your investment is sound.

Wh05apk

It would have to be a pretty dire investment not to beat 2% long term?