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If you can only get 4.5% as savings but would be paying 5-6% as mortgage interest I'd pay it off in the mortgage.
If you are only concerned about needing it in the medium term, then the effort of getting it back via remortgaging isn't so bad (as presumably you'll remortgage at some point anyway) and better to save the cash until you do.
andyfallsoff-
When I remortgaged the broker told me it is not possible to increase the loan as part of the process, only for specific planned improvement work. I would double check how easy it is to get equity out as part of a remortgage process.
Depends on your situation but above your allowance interest is taxable at marginal income tax rate
hesa
Very close to paying off a chunk of mortgage debt (without early repayment charges).
The actual impact of the debt on variable rate is about £150 per month so it's absorbable at the moment.
I'm not sure what I could do with the money to confidently earn more than the 5-6% I'm being charged on it now. There are fixed savings accounts that offer around 4.5% now for three years. Maybe that could be a way of betting that the rates will have dropped at the end of the three year period and you get to the keep the money so that you can invest it in better times. Not sure I would bet against variable rates costing 7-8-9% in the short term though.
Downside of paying it off obvs. is that we can't get the money back without remortgaging. Do we need it right now? Not really. Will we need it in the medium term? Maybe.
Feel like paying the debt down is a bit of a no brainer. But anyone want to tell me what I've missed?