Extenting the house finance question

leni

we are looking to have an extention built this year and are unsure of which way is the best to finance it!

We have a mortgage of approx £55 remaining on a house worth £110k. Our mortgage is a discount tracker which is 0.6% above the base rate and ends 2012.

We have a loan that finishes in July but would afford to double up on loans for a few months (and not put money into savings them months).

We need about £10k, whats the best way to finance this? Unsecured Loan or remortgage or a secured loan?

thansk for your help?

powerwin

I am not an expert, but I do know that the conditions in the mortgage market are much tougher know, so I would imagine it would be hard to find a better mortgage than your current one if attempting a remortgage.

Rgds

dimbo61

If you are spending the money on an extension and have applied to the council for permission and have the plans drawn up then the next port of call should be your existing lender.
You have lots of equity and a good LTV and provided you can afford the current mortgage plus the loan plus the new loan/ extra borrowing it should be no problem.
Ask for an appointment with your lender and consider starting the work after you have paid off the loan in July.
You dont want a new mortgage just the extra money ( which will be on a different rate/deal)
Try to ensure that both deals on both parts of your mortgage finish at the same time IE 2012

dimbo61

You could also use your savings after clearing all your debts and save hard to replace the savings.
Its a tough time for builders and they could do with the work.
Dont know what size extension you want but £10k wont go far!

dimbo61

The cheapest way to finance this is too use your savings and drive a hard bargin with the builders ( all looking for work)
£10k is not alot for an extension !

dimbo61

Sorry though I had deleted my last post
GOOD LUCK

leni

hoping to use some of the savings towards the loan to pay for the extention. Clueless really, we are still in the early stages and builders are due in next week to start quoting us!

thanks for you thoughts