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WWYD pay off mortgage or home improvements?

(13 Posts)
DuffRose Wed 27-Aug-14 20:30:41

Hi,

Just after other peoples opinions as to whether if they had a sum of money they would use it to pay of half their mortgage (leaving a very small mortgage which could be cleared in a couple of years) or use it for a new kitchen, decorating etc?

very lucky to be in this position and cant decide

TIA

rainbowinmyroom Wed 27-Aug-14 20:31:47

I would use it towards the mortgage.

atticusclaw Thu 28-Aug-14 11:39:27

mortgage, unless the kitchen is literally falling to bits

Pootles2010 Thu 28-Aug-14 11:41:57

Mortgage! You'd be mad not too. You'll save so much you'll be able to pay for your decorating in no time anyway.

TwelveGrimmauldPlace Thu 28-Aug-14 11:48:09

Mortgage, definitely.

peggyundercrackers Thu 28-Aug-14 11:54:24

I think it depends on how much your speaking about... how much is your mortgage - if you pay off most of it how much extra money will you have each month? presumably no more extra money per month as you will just change the term of the mortgage...

mortgages are cheap just now which makes borrowing money cheap - I think they will stay cheap despite all the bluster from BoE saying they will go up - reality is they cant afford to put interest rates up as the govt would struggle to repay their/our debt... that's before they think about everyone who is mortgaged to the hilt.

CogitoErgoSometimes Thu 28-Aug-14 12:23:51

I had similar dilemma earlier this year. Mortgage nearly paid off (<10% of the value of the property) but I chose to double it in order to pay for significant and much-needed home improvements. My rationale was that debt-free would be very nice and the extra disposable income would be nice but that, in order to enjoy living in a lovely up-to-date home now, I was happy to postpone that moment for a few more years.

TalkinPeace Thu 28-Aug-14 15:25:20

Depends on how long you plan to stay in the house but I would say make it how you want it, with an eye to selling at a later date

Mortgages are ridiculously cheap at the moment (mine is less than inflation) so get the house you want and then relax and repay later

Suzietwo Tue 02-Sep-14 21:51:40

Once you sink the money into the mortgage it's gone. Using it to make the house how you want it will improve your standard of living (probably). So if the mortgage is affordable, I would (and am) do the home improvements. Anything left over can go into an offset so you maintain the flexibility of having the money available to you and the lower mortgage payments.

Supermum222 Wed 03-Sep-14 16:22:04

Pay it off the mortgage. Then pay the rest of the mortgage off. Then get a home improvements...unless your kitchen is falling apart!

Fluffycloudland77 Wed 03-Sep-14 16:58:26

Mortgage every time.

Timetoask Wed 03-Sep-14 17:03:57

Once you the money is gone into the mortgage repayment you will never be able to save enough for the home improvements.

If this is a house you plan to live in for many years, then I would do the improvements (provided that you feel confident about affording the mortgage in the long run)

If you are planning to sell the house in a couple of years I would repay the mortgage. No point improving a house you are not keeping and hopefully any mortgage repayment you make will come back to you upon resell (unless there is a massive market disaster).

Newbizmum Sat 06-Sep-14 14:17:31

Refinance to fixed rate to clear mortgage with home improvements in 5 years if possible. Then you have the best of both worlds.

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