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Use savings or take out against mortgage
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katalinetball
Posts: 7 Forumite
Hi all
Looking for some advice, maybe someone with a mathematical mind!!
I am adding an extension to my house at a cost of £21000. I have £15000 in cash and £6000 in shares which could be used, but would really be using all my savings. I could get a further advance on my mortage at a rate of 2.64% over 2 years as that is all i have left on my term.
I have a savings account which pays 2.8% and another which allows me to pay £250 per month at a rate of 6%. What I would like to know is it worth keeping my money in these accounts and drip feeding it into a further advance on my mortgage or would the interest I make be negligible. Hope someone can help. thanks
Looking for some advice, maybe someone with a mathematical mind!!
I am adding an extension to my house at a cost of £21000. I have £15000 in cash and £6000 in shares which could be used, but would really be using all my savings. I could get a further advance on my mortage at a rate of 2.64% over 2 years as that is all i have left on my term.
I have a savings account which pays 2.8% and another which allows me to pay £250 per month at a rate of 6%. What I would like to know is it worth keeping my money in these accounts and drip feeding it into a further advance on my mortgage or would the interest I make be negligible. Hope someone can help. thanks
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Comments
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Do you pay tax on yoru savings or are they ISAs?
Personally for the small amount of interest it will cost/save you. I would do whatever is the most convenient.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Hi ACG
Thanks for your reply. They are Nationwide savings accounts not ISA's but I am not a tax payer and receive gross interest.0 -
With 2 years to run on your mortgage the monthly repayments would be high.0
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will you get that £21000 back when sell, or will it make your house worth £21000+ more. Is your house below the market value for the area?
£21000 on top of the current value, could be a bigger or different house.0
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