Deciding between a loan and remortgage to release £20,000

duncan32

Hello everyone,

We are going to get an extension down the side of our detached house, which I anticipate is going to cost around £20,000.

I currently have a SVR mortgage with C&G, which is running at 2.5% , so I am loathe to mess around with this (also I am concerned about arrangement fees and so on...).

Am I right that the best option for this amount of money would be a loan for the £20,000, rather than adding it to our existing mortgage?

I'm sure there will be no hard and fast answer, but would appreciate anyone's views and advice. Are there any good sites that I could look at to get a bit of a clearer view?

Thanks in advance.

Duncan

inmypocketnottheirs

We looked at this recently and although not gone ahead and done anything. I enquired about a further advance that was on the same terms as main mortgage, but was a separate loan and could be settled individually. Maybe this is something you could consider.

duncan32

Hi there,

Thanks for that, it's certainly something I will ask about now that you mention it. Was that the best option that was open to you, then? Does anybody else have any experience with this type of situation? It would be good to get some background ideas.

Thanks again.

Duncan

_Andy_

The main mortgage won't be affected.
If you ring your lender they will let you know what products are available for a further advance.
Your alternatives are secured loans (i.e. with another company) or a personal (unsecured) loan but the interest rates are going to be much higher.