Borrow for home improvements or use money in the bank?

[Ponders]

We need to have various work done (new roof, windows etc) & do have enough in the bank to cover it, but DH will be retiring in 4 years & then our income will plummet, & I believe borrowing would become significantly more expensive.

Would it make more sense to borrow the full amount now, at a relatively low rate of interest (credit rating is good) & pay it off over the 4 years before he retires, leaving the capital where it is?

We have a car loan at £230pm which finishes in October, & could borrow £10K over 4 years at the same monthly payment, so we wouldn't really notice it. That's at 5.9%, & of course the money-in-bank is only earning max 3% interest, but I feel it would be comforting to know it was still there for emergencies!

TIA

You would be better off paying with your savings and then putting aside the money you would have spent on loan repayments into a savings account so that you don't pay any interest charges.

However, I can understand that by taking out the loan it gives you security knowing that you do have funds available to you and also it depends on how good you are at saving. As if you think you may not replace all the money into the savings then you may be best to get the loan knowing that you have to make the repayments.