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Using surrender money for home improvements or pay off mortgage ?
debbycatz
Posts: 209 Forumite
I'm about to cash in my endowment policy (I've already switched mortgage to repayment 2 years ago). However, my house needs quite a bit of work doing still and I'm tempted to use the cash to improve the house (£7,500). Does this seem madness given how much interest one pays in total on a mortgage ? I think if I pay the full £7,500 off the mortgage I will be saving loads in interest but then I would need to borrow a substantial sum to get work done on the house. 
So, my question is:- is it better to pay the lump sum off the mortgage then take a loan for house improvements or shall I simply use the £7,500 for the house improvements
Some advice from you guys would be appreciated
So, my question is:- is it better to pay the lump sum off the mortgage then take a loan for house improvements or shall I simply use the £7,500 for the house improvements
Some advice from you guys would be appreciated
0
Comments
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"Simply use the £7,500 for the house improvements"
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
unlikely that a loan will be at a lower interest rate than the mortgage so use the money for the improvements rather than pay off from the mortgage. you can always overpay on the mortgage later when you have spare money.EU tariff on agricultual product 12.2%
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