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    help with additional borrowing for extension
    • #1
    • 7th Jan 11, 5:50 PM
    help with additional borrowing for extension 7th Jan 11 at 5:50 PM
    hi ,not sure if this is the right place to post this question but here goes!
    i am having a 2 storey extension built and need some advice about the best way to finance the 25K i need for the build!
    i have applied to my existing mortgage company for the additional amount but they valued my house less than i was hoping for, so have only offered me 14K
    out of the 14K i need to use 2K to pay off an existing loan
    saving me 180 per month
    my current mortgage deal is fixed for another 3yrs and i have 23 years remaining at 350 a month

    to make up the short fall i want to get a personal loan of 13K
    to afford this i need to decrease my mortgage, my budget is 550 per month
    i can reduce my mortgage payments in 2 ways and am not sure which will be best option-

    1, increase the term of my mortgage and additional borrowing of 14K to 30 yrs to bring down payments to 382 a month

    2, change my mortgage payments to interest only which would be 300 per month

    i plan to remortgage in 3yrs time when the fixed term is up and to consolidate the 13K loan into the new mortgage
    any help here would be much appreciated as i have an impatient wife here who just wants her new extension built yesterday
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