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Top-up mortgage or loan?
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djlester_2
Posts: 28 Forumite
Hi,
Well, hopefully we will be getting a deal done to sell our old place and move to a new one shortly, but I still have some questions about the best way to finance this. So I hope someone can help (and yes, I'll be sneaking away from my desk to call my bank shortly!).
Our house is going for 290k. Outstanding mortgage is 120k. We also have about 40k offset savings and about 25k in ISA's. Existing mortgage is portable and a good rate, but not extendable.
New place is going to cost 350k. So we figure around 15k for EA fees, Solicitors, and stamp duty.
Net balance here - we need about 10k. But we also know there is a lot of work for the new place (15k for wiring, windows etc.), plus we would look at an extension and other bits and pieces in the future (50k? Plus the internal work).
So - any thoughts or opinions on getting some kind of loan to cover our initial outgoings or should I plump straight for a mortgage to cover the shortfall? Will most places be happy to give a top-up type mortgage? I think I can get a 40k top-up mortgage (maybe a touch more) so maximum LTV (combined) will be around 45% - I just couldn't afford any more for the repayments.
What about mortgages that will allow me to take just what I need, and have the rest available at a later date?
All thoughts and opinions gratefully received!
David.
Well, hopefully we will be getting a deal done to sell our old place and move to a new one shortly, but I still have some questions about the best way to finance this. So I hope someone can help (and yes, I'll be sneaking away from my desk to call my bank shortly!).
Our house is going for 290k. Outstanding mortgage is 120k. We also have about 40k offset savings and about 25k in ISA's. Existing mortgage is portable and a good rate, but not extendable.
New place is going to cost 350k. So we figure around 15k for EA fees, Solicitors, and stamp duty.
Net balance here - we need about 10k. But we also know there is a lot of work for the new place (15k for wiring, windows etc.), plus we would look at an extension and other bits and pieces in the future (50k? Plus the internal work).
So - any thoughts or opinions on getting some kind of loan to cover our initial outgoings or should I plump straight for a mortgage to cover the shortfall? Will most places be happy to give a top-up type mortgage? I think I can get a 40k top-up mortgage (maybe a touch more) so maximum LTV (combined) will be around 45% - I just couldn't afford any more for the repayments.
What about mortgages that will allow me to take just what I need, and have the rest available at a later date?
All thoughts and opinions gratefully received!
David.
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