Remortgaging to Extend

[Browntoastwithbutter]

If you were remortgaging to extend would you do it now to lock in a deal before rates go up again and hang onto the cash until it’s time to start work?

I am secretly hoping that build costs come down a little in the next year or so!

I doubt build costs will come down. builders have never been so busy.

As for the remortgaging and holding onto the cash, it depends on how long. You will start to pay interest from the day you complete; so whilst you sit on the cash, you will be paying for that privilege. You could weigh up the cost in interest at keeping the cash for Vs waiting and assuming what the interest rates will be when you are ready to start the project.

It is worth noting though you can lock in a mortgage deal up to 6 months before for many mortgages. So may be you could start the process now with the application but have a completion date in the future from when the mortgage offer is made. That way you lock in the interest rate now but you don't start paying interest till you actually need the funds.