Mortgage or no mortgage?

[Mybestusername]

I'm thinking about downsizing, selling my house and moving somewhere smaller - the difference in price will essentially pay off my mortgage. However, depending on the house I buy, I might need some funds for renovation.

Is it better to take out a mortgage when buying the property or buy it outright, then subsequently mortgage to cover renovation costs? Or does it make no difference either way? Only thing I can think of is that I'll incur a fee in paying off current mortgage (but it's not huge). Am I missing something else?

It's very freeing being mortgage free and, depending on your circumstances, allow you headroom to build up your pension.

Perhaps the answer will depend on the level of renovations? Are we talking £10/20K or £100/200K? If the former then it may be better to look at personal loan. Not advice!

Depends on the house but ideally no more than £20-30k. I'd assumed it would be better to use a mortgage rather than a personal loan, as the interest rate would be lower.

Some mortgage lenders won’t lend until you’ve owned a house for at least 6 months (unless you get the mortgage at the time of purchase) so that might be a consideration. Interest rates are likely to come down though so it depends, if you can wait a bit then you’ll potentially end up with a better deal. But what I would really suggest is talk to an independent mortgage broker as they will actually know what they’re talking about!