Wednesday, 10 November 2010

Should we pay off our mortgage or extend the house? | Money | guardian.co.uk

Should we pay off our mortgage or extend the house? | Money | guardian.co.uk

Q We have an outstanding mortgage of slightly less than £60,000, and savings of £80,000. Our house is worth about £200,000. Our mortgage is on a variable rate which, given that interest rates are low, is good. But we are worried rates might start creeping up. Should we use our savings to pay off the mortgage, or would it be better to use them to increase the value of the house by building an extension? We're unsure whether to move to a larger property or stick it out.

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