Put money into mortgage or wait?

Bigwigg

We have recently inherited £50 k which is well timed as we really need a bigger house. We would like one on the same estate where we are but nothing for sale at the moment. We have decided to wait 12 months and see is anything comes up for sale and if not, extend our current property. I'm unsure what to do with the 50k in the meantime- pay it off our existing mortgage or hang on to it in a savings account in case we need it for the extension? Or would it be easy enough to borrow it back from the mortgage company for the extension?
All thoughts appreciated

Yorkie1

It isn't guaranteed that you'll be able to withdraw the funds down again. You'd need to look at your original documentation but also be aware that even if permitted, the lender might not agree to a specific request.

What is your present interest rate?

Bigwigg

We're currently on a fix 4.47% but that runs out at the end of March and I'm looking at a new 3 year fix of about 2.5%. That is another thing to add to the pot- if we pay off the £50k now as obviouslt LTV would change and could even get a cheaper deal than that