Advice needed - should i use savings to reduce mortgage (even if i'll need that money later)

AC78

Hi all, we’re about to come to the end of our current mortgage term and have a few options as to which way to go, as we’re also looking to start some serious renovation work on the house within 12 months (plans all approved, building regs drawings being finalised before we approach builders). 

We would love some advice / challenges from the forum.

My question is, do I:

1. Take out a new mortgage deal to cover existing mortgage amount and leave the savings I have for the extension sitting in a current account, until the time when we need to use them for the building work. 
2. Take out a new mortgage, but use my savings to reduce the overall mortgage amount and benefit from the reduced monthly payments. Then I would have to apply for an additional borrowing at the time we required the money to cover the building work. 

What’s the best way to assess?

Thanks

[Deleted User]

Assess it on the relative rates and likelihood of you getting future borrowing, as well as timescales for the work.

alanyau88

You don't mention if your savings is enough to cover all your renovation works.  You need to do the arithmetic.   If I were you I would 

1. Take out a new mortgage deal to cover existing mortgage amount and leave the savings I have for the extension sitting in a high interest rate savings account, until the time when we need to use them for the building work.