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Extending mortgage - what shoud we do?
thetigerwhocametotea
Posts: 23 Forumite
House value £460,000
Mortgage outstanding £220,000
Current mortgage rate 2.99% reverting to BofE base rate +.99% from 1st April
We want to extend our mortgage by £20k to have some work done on the house and pay off about £10k worth of debt. West Brom B Soc who we are currently with have offered us a fixed rate of 4.59% for 10 years or 4.19% for 2 years on the extra £20k.
A few years down the line when we find the BofE base rate rising significantly would we be able to lump both parts of our mortgage together and go elsewhere?
I'm worried if we fix the 2nd part of our mortgage for 10 years we'll be stuck with West Brom because of the redemption fees, when we will be able to get a better fixed rate elsewhere and move the entire amount. Would we be better fixing for 2 years in this case?
Because we have a low loan to value ratio I presume we are in a good position and would not have much trouble finding another mortgage provider at a decent rate? But I might be completely wrong!!
Any advice appreciated.
Mortgage outstanding £220,000
Current mortgage rate 2.99% reverting to BofE base rate +.99% from 1st April
We want to extend our mortgage by £20k to have some work done on the house and pay off about £10k worth of debt. West Brom B Soc who we are currently with have offered us a fixed rate of 4.59% for 10 years or 4.19% for 2 years on the extra £20k.
A few years down the line when we find the BofE base rate rising significantly would we be able to lump both parts of our mortgage together and go elsewhere?
I'm worried if we fix the 2nd part of our mortgage for 10 years we'll be stuck with West Brom because of the redemption fees, when we will be able to get a better fixed rate elsewhere and move the entire amount. Would we be better fixing for 2 years in this case?
Because we have a low loan to value ratio I presume we are in a good position and would not have much trouble finding another mortgage provider at a decent rate? But I might be completely wrong!!
Any advice appreciated.
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