Am I making the most of my money?

[Chicken Chaser]

I've been saving hard to extend our house next year. I currently have around £30k pumped into my mortgage as overpayments (paying around 2.4% on 100k with the overpayments) and the intention is to pull this out and with a further advance, it'll take the mortgage back up around £150k.

It'll be used from next May so expect that to get anything else with such a return would be a risky bet? Should I be looking to sink this into something else long term and just pay the larger mortgage?

I'm fairly sensible at managing money but I'm a novice at investments.

[Chicken Chaser]

Countdown said:

If I read that correctly you're effectively getting a guaranteed 2.4% return, instant access, and zero risk? If that's the case I'd leave it where it is.

Yup thats pretty much it. I wasnt so sure if I should be pumping the cash in elsewhere for a longer term investment and instead of paying cash for everything in the build, taking a further advance at around 2.5% for the whole amount.

[Chicken Chaser]

So would you recommend that going forward beyond the build then? I could keep on paying overpayments rather than investing in something like fiver-a-day.

[Chicken Chaser]

supercommuter said:

Ideally I would be looking at £70 per month invested into Honda Finance....

All joking aside, mortgage first. Get rid of that weight

Haha! Yes, my input on that thread hasnt gone without notice!

[Chicken Chaser]

We have nearly almost 50% equity at the moment so should be ok to take an additional 20%. Mortgage is well within our means and jobs are stable. It's in there now and whilst I can remove the payments, it might be cheaper for me to get the further advance at a lower rate and leave the cash in the pot.