Remortgage BTL, repay loan or take lump sum

Lookingforadvice2024

Hi

I’m not 100% sure under which category my question/discussion fits into. 

Im coming up to 55 and the plan was to take 25% lump sum from an old work pension.  We are using the money to convert our VW van into a campervan. 

I have a BTL mortgage with loads of equity. It’s interest only which bothers me so I am going to change that to repayment and clear it the next 10/12 years regardless.  

I wondered if not take 25% from the old workplace pension and take the money for the campervan conversion instead from the BTL mortgage, so additional borrowing at 4.99% (figures I’ve recently looked at).  Am overpaying regardless to pay off the BTL mortgage in 10-12 years. 

In my mind of working outs in 10-12 years if all goes to plan, the BTL is paid in full and I haven’t taken money out from my pensions.   But does it make more sense to use the 25% lump sum to fund the conversion instead of borrowing for it via refinancing BTL.

My head is bursting with ideas right now! 

Thanks for reading.