Remorgage now or later?

tinkerbelluk

Hi Guys I'm just after some basic advice if that's OK.

We're coming to the end of our fixed rate period and want to tie in for another 5 years but we're planning on doing an extension next year so we need approx an extra 30k.

How the question is do I get thje whole amount now and just keep the 30k in savings until we need it or will they let me increase the amount of borrowing when I need it next year given that I'll be in a fixed mortgage?

Barney088

It depends, some lenders will allow you to do this, i.e. get the whole loan sorted now on your five year fixed rate and then let the £30 go when you need it. It's called a "part retention" but not all lenders do it. THe other question you need to answer is how much can you invest it for? If this more than pays the interest then you might as well take it all now, depending on when you want the money for the extension.

Some lenders will not be able to help, however it is not something that happens a lot so best to ask your lender if they will help.

homer_j_3

Or you can look for a lender that allows drawdown and overpayments. You will need to check the details of these features for maximum-minimum amounts though

tinkerbelluk

Thanks both - I guess I need to speak to an IFA really to find out what the best deal around is. Mny thanks for all of your help :T