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Can you put extra Mortgage Borrowing into a Savings Account?
shbrooks
Posts: 17 Forumite
We recently borrowed an extra £115k when we remortgaged to renovate our property and are not quite ready to use it until next year. Is it okay to move this into a Savings Account or is this seen as some sort of money fraud? To further complicate matters, the savings account we wish to use is provided by the same bank who provided us with the extra borrowing and the savings interest rate is higher than the borrowing interest rate. Any help greatly appreciated.
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Comments
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It's yours to do with as you wish so yes, it would be crazy to not move it into an interest bearing account until you're ready to spend it on renovations or anything else for that matter.0
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Does your mortgage have an offset option? We remortgaged a few years ago with the thought of using the extra to renovate. We kept the excess in the linked offset account, which saved us interest on that balance against the mortgage balance. Will only work if it saves you more in interest than what you will earn in interest in a savings account.0
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