remortgage & borrow more or get a loan?

moomi

Which is the better option overall if I need say £10,000 and can pay back over 5 year? My mortgage is £101 & £60k on fixed rate and the rest of it on a tracker til April. in the past each time we have remortgaged we've just borrowed more but if i'mdoing fixed rate again for say 5 years but its £101 plus £10,000, is that more expensive than £10,000 just on a loan?

Sorry if thats tmi or mabe not enough! Probably caused more confusion than anything!! Any info or advice gratefully accepted!!

CloudCuckooLand

Adding to a mortgage means you pay interest for the life of the mortgage.

It depends on the mortgage interest rate and term versus the loan interest rate over 5 years, as to what will work out best mathematically.

I'd lean towards a loan.

Increasing the mortgage amount will require a valuation, which might not be as promising for extending your borrowings as your previous remortgage. A loan avoids that problem.

VIGILANT22

CloudCuckooLand wrote: »

Adding to a mortgage means you pay interest for the life of the mortgage.

It depends on the mortgage interest rate and term versus the loan interest rate over 5 years, as to what will work out best mathematically.

I'd lean towards a loan.

Increasing the mortgage amount will require a valuation, which might not be as promising for extending your borrowings as your previous remortgage. A loan avoids that problem.

"Adding to a mortgage means you pay interest for the life of the mortgage"....This is not entirely true, it would only be if you took it for the same term of the mortage, other options can be available depending on the type of mortgage you have...ie a further advance can be taken over ie 3/4/5yrs. etc..or if you had a flexible( no restrictions) mortgage you could pay off within your timescale