ReMortgage or loan

[Pob13]

We want to make some home improvements. We could use all of our savings or borrow more on our mortgage. Which is the better option?

If you used your savings, you could save them back because you don't have increased mortgage payments to make - this is also cheaper due to earning interest instead of paying it. However, sometimes mortgage rates are about the same as that earned by savings, so it could be that if you keep your savings, they earn more than what a mortgage would cost you, especially if they're currently in an ISA.

But it would depend on how much slack is in your budget if you need extra money while you're replacing your savings. What if the work costs more than anticipated, or if you have another big expenditure. If this did happen, it would probably be cheaper to take out a smaller personal loan.

Depends what rate you're getting on your savings, what mortgage rate you could get, whether it would completely wipe out all savings, whats the contingency plan as these things always cost more than you think, how soon could you save the money back up again, what's your family situation i.e. have you got triplets about to go to uni, or have you got triplets about to start school and your childcare bill will be slashed, have you got good protection policies that you would be ok if something happened just when your house is a building site that you can finish the work.... extreme examples but I wouldn't make a big financial decision without weighing it all up.

Thanks both, thats given me stuff to think about.