Minimum Mortgage.

cold_up_north

I only owe £4500 on my Mortgage, I have the funds to pay it off, but have now decided I would like to re-mortgage for home improvements, the problem is my mortgage is with Bradford and Bingley, so cannot get a further advance from them, I only need about £10000 to do the house up, I know I can get aloan, but Mortgage rates are lower, what is the minimum lend for remortgages or should I pay the Mortgage off and apply for a new mortgage.

Thanks.

HappyMJ

Mortgage rates may be lower but you need to take into account the fees...On £15,000 it will make a huge difference. The minimum fees that you'll be looking at will be valuation, solicitor and money transfer fees. If they offer to pay them for you there'll be an application fee instead so no way of getting around them. £600 worth of fees will add 4% to the interest rate in the first year.

If you have really good credit then get a credit card with a £10k limit with 0% on purchases for a year and put everything you buy for the next year onto it. Save what you would have spent pay that off the CC in 12 months and then refinance the remainder. It also saves money as you can borrow the money in bits throughout the life of the project that you have in mind instead of borrowing £10,000 and sticking it in a savings account to be drip fed to the project.

getmore4less

I would consider a low fee offset with a long term

Draw down the money as/when you do the building work.

Save back into the offset.

Have this as a back up if you decide to do more work in a few years time

House_owner

Why can't you get a further advance with Bradford and Bingly, the building society I have my mortage with allows 'home owner loans' to be added to the mortage and you can borrow any amount you want. - From as little as £1000

cold_up_north

Bradford and Bingley do not do Mortgages anymore or further advance loans, alot of customers in the same boat as me.