How should I pay for home improvements?

I need to do some house improvements which includes getting a new roof, windows and so on. I am 57, employed and have an endowment mortgage with the Halifax.

I have savings of £10,000. Should I fund the project with my savings or instead save my capital and borrow the £10,000? What are my best options?

GP

A I would use the savings to fund the house improvements. It inevitably costs more to borrow money than can be earned from investments, especially if you are a taxpayer.

One possible alternative is to consider surrendering the endowment mortgage. If it is invested in a with profits fund, as is quite likely, the endowment policy may not rise in value by very much during the remainder of its term.

If you can get a decent early surrender value now you could put the policy premiums saved into a better investment vehicle like an Isa, as well as keeping your £10,000 to help pay off the mortgage.