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Any point paying this off now?
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zippy08
Posts: 44 Forumite
Curious to see what the MSEs on here would advise in this situation: I am looking to build an extension to my current property and the dilemma is about the best way to fund it. I have saved money for this purpose and this pot is now at virtually the same figure as my current mortgage balance, which is an interest-only product at SVR 2.1% and 24% LTV today.
The thought has crept in whether I should take advantage of the interest rate situation to pay off (say, 90% of) the balance, then take out a fixed-rate mortgage that I can pay down in 10 years or less (objective: mortgage free by retirement). The alternative is to use the savings as originally intended for the extension, and re-mortgage to a fixed-rate product to achieve the same objective.
A side-benefit of remortgaging would be to make up any shortfall in the final cost of the extension (say, if we went mad on marble and gold plated plumbing
).
Is this just a case of six of one or half-dozen of the other?
The thought has crept in whether I should take advantage of the interest rate situation to pay off (say, 90% of) the balance, then take out a fixed-rate mortgage that I can pay down in 10 years or less (objective: mortgage free by retirement). The alternative is to use the savings as originally intended for the extension, and re-mortgage to a fixed-rate product to achieve the same objective.
A side-benefit of remortgaging would be to make up any shortfall in the final cost of the extension (say, if we went mad on marble and gold plated plumbing
).Is this just a case of six of one or half-dozen of the other?
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