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second mortgage or bite the bullet.

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toonjohn32
toonjohn32 Posts: 5 Forumite
Part of the Furniture Name Dropper First Post Combo Breaker
edited 21 May 2009 at 5:27PM in Mortgages & endowments
I took out a loan with Northern Rock in 2005 for 160000 at 10 year fixed rate of 4.99%. According to various websites the current value of my home is 295000. I would now like to borrow a further 20000 for home improvements and some debt consolidation. The early repayment fee however is approximatley 8500. What would be my best option?

1. approach Northern Rock and see if they will lend me the extra money
2. Try and borrow the extra money from another lender (I'm not sure if you are allowed to have 2 mortgages on one property)
3. Bite the bullet and pay the erf and remortgage with another lender.
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