Remortgage? second mortgage? or what?

catford

Any advice please:D?? I have a17k mortgage with the Coventry at 1.75% variable with 5yrs to run and I want to borrow 30k to do a loft conversion.What's going to be the most cost effective way to do this? The property value is 170000, so the equity is good.
I need to keep the repayments as low as possible because I don't earn a lot so I am thinking of extending the current mortgage to 20 yrs and taking a new one, at 4.99% fixed for the first 3yrs,over the same period, which will keep the payments down. Unfortunately, I can't afford to pay both together for the next 5 yrs which would be my ideal choice
Any alternative suggestions would be welcomed.;)

dimbo61

Looking on the coventry website they do a 5 year fix at 4.49% and with your LTV I cant see you having a problem getting it!
Now £47,000 over 20 years at 4.49% ( fixed for 5 years !!) works out at £297.09 ( using "whatsthecost" )
I am sure that coventry would like you to come off the cheap deal you are on now and move to a 4.49% fix BUT you would be better off to keep you existing deal ( at the moment) and borrow the £30,000 over 20 years ( or less ) from coventry if you can.
So give them a call and see what they say GOOD LUCK

catford

dimbo61 wrote: »

Looking on the coventry website they do a 5 year fix at 4.49% and with your LTV I cant see you having a problem getting it!
Now £47,000 over 20 years at 4.49% ( fixed for 5 years !!) works out at £297.09 ( using "whatsthecost" )
I am sure that coventry would like you to come off the cheap deal you are on now and move to a 4.49% fix BUT you would be better off to keep you existing deal ( at the moment) and borrow the £30,000 over 20 years ( or less ) from coventry if you can.
So give them a call and see what they say GOOD LUCK

They are a cheeky bunch because that offer was made to me last month before I was certain of how much I needed and I phoned them last week with the correct amount and they sent me the paperwork based on the 4.99 fixed for 3yrs
There was no mention of the 4.49 fixed for 5yrs.
Thanks for the info :T I will be on the phone to them tomorrow.:mad:
I would love to keep the existing deal running but I just can't take the risk--it would be stretching the pot too much;) even though it would only be for 5 yrs.

catford

catford wrote: »

They are a cheeky bunch because that offer was made to me last month before I was certain of how much I needed and I phoned them last week with the correct amount and they sent me the paperwork based on the 4.99 fixed for 3yrs
There was no mention of the 4.49 fixed for 5yrs.
Thanks for the info :T I will be on the phone to them tomorrow.:mad:
I would love to keep the existing deal running but I just can't take the risk--it would be stretching the pot too much;) even though it would only be for 5 yrs.

Apparently the rates on the website are only for new borrowing, not for existing customers???:rolleyes: That's not the way to keep the business.:eek: Now I look for a better deal somewhere else.

happybroker

there are better deals than the one they've offered you catford so good luck.

catford

happybroker wrote: »

there are better deals than the one they've offered you catford so good luck.

Thanks for the reply--As one with the knowledge have you any suggestions ? In true money saver spirit I would be looking for as fee free as possible.:D

dimbo61

I cant belive that the cheeky gits
Play merry hell with your local branch manager and tell everyone you talk to on the phone that you will be writing to the chief exec and the board of directors.
You will also be complaining to the FSA and writing to the papers and Martin Lewis ( saint !!!!)
Make as much noise as possible and keep asking to speak to the next person up the chain of command to get the deal they would offer to a new customer!!
GOOD LUCK