Additional borrowing

Threebabes

Hi, our mortgage is currently 93k, house is worth about 185k, we need a new kitchen & bathroom and would like to borrow £20k or add it on mortgage so we can do that.

We are fixed in with halifax until December. Wonder if anyone knows the best way to do it?

Thanks for any advice.

SandC

I would just give the Halifax a ring and ask them if you can borrow another £20k.

opinions4u

Halifax will certainly consider the lending. Personally I'd wait until October and then consider remortgage options that complete in December (as your current product expires).

What might not be a good idea is to have two products on your mortgage. You could end up paying a big fee for a £20k product now and another big fee for a £93k product in December.

08457 27 37 47 to talk it through with Halifax.

nw_man

opinions4u wrote: »

Halifax will certainly consider the lending. Personally I'd wait until October and then consider remortgage options that complete in December (as your current product expires).

What might not be a good idea is to have two products on your mortgage. You could end up paying a big fee for a £20k product now and another big fee for a £93k product in December.

08457 27 37 47 to talk it through with Halifax.

Of course if Halifax allows them to go onto their SVR ( and has no fee ) then that would be ok.

But I totally agree about not paying the fee for such a small borrowing.

opinions4u

nw_man wrote: »

Of course if Halifax allows them to go onto their SVR ( and has no fee ) then that would be ok.

I've looked, but can't see anywhere that says the customer can go on to the SVR.

But I totally agree about not paying the fee for such a small borrowing.

Cheapest product fee appears to be £299 with a £99 fee for arranging the additional loan.

sammyjammy

When I was looking six months ago they only allowed people to take out further borrowing on a fixed rate but if I remember correctly it was in sync with the end of your current fixed rate.

nw_man

What I meant was that they should ask if they could take the further advance on the SVR, then work out what to do with that plus their current mortgage when the fixed deal ends in December.

Threebabes

Hi

Whats an SVR?

I wonder if its worth out while to hold on until December when our fixed rate is finished and remortgage with whoever has the best deal and add an extra £20k on that way, if thats possible?

Thanks

opinions4u

Threebabes wrote: »

Whats an SVR?

Standard variable rate. Currently 3.5%. It's what you go on to when a fixed/tracker mortgage product ends.

I wonder if its worth out while to hold on until December when our fixed rate is finished and remortgage with whoever has the best deal and add an extra £20k on that way, if thats possible?

I think that's going to be your best course of action, but make the phone call to 08457 27 37 47 first. I wouldn't want to have misled you in to delaying your new kitchen and bathroom for 6 months