Remortgaging- what to do with money till spent?

[Havana]

We are remortgaging our property at the moment and just about to sign the loan offer. The money we release is being used to buy a property abroad. Chances are we will not complete the purchase abroad until at least the end of September.

Basically we are wondering what to do with the money we get (approx €110,000) until then- what is the best type of account to put it in till then- or can we hold off drawing it down for a few weeks? Which will cost us the least amount of money?

Thanks

 

[Snork Maiden]

You could just not drawn it down........If you do draw it down you would need to deposit somewhere that pays interest in excess of the interest payable on the mortgage. Which is unlikely since you need it in september (not that far away now!).

Why would you want to make repayments on it now before you really need to?

 

[Havana]

We don't- just wondering if it is ok to not draw it down till we need to. We are changing banks so obviously they need to be paid off. i Is it possible to leave the excess till we need it?
Thanks- will check with them.

 

[liteweight]

Ask your lender to allow you to draw down the money in 2 moieties. You can draw down the money for a deposit etc. and pay back on that. Later you draw down the balance and start paying on the entire amount.