Mortgage Extension Thoughts

Aberdeen_Taff

Hi there,

Looking for some advice if possible please. I have come to the end of my fixed term with First Active and am paying 0.5% above base rate which is great and we're saving money every month from the 3 year fix we were on.

The house is in Scotland (Aberdeen) and valued at approx £350k (valuation last Sep) with £128k outstanding. we are looking to put on an extension that will cost approx £50k inc. all fees and I was wondering what would be the best advice/deals for going about rearranging my mortgage for it?

Will an all of market free (to me) broker get better deals than I can see on the internet? Is now considered to be a good time to do this rates wise or should I look to save the extra money each month until drawings/planning permission etc. is completed and see how the land lies then? I have always liked the thought of a fixed rate where I know what's coming out each month and, if I fixed now, would be happy to do so for up to 5 years
for stability's sake.

Any ideas greatfully received.

:beer:

dimbo61

Can you get the extra money from First active on a fixed rate deal while keeping the current excellent tracker deal you have at 0.5% above base.
They would be the cheapest by far and you have part of the mortgage fix 30% and 70% on a tracker deal.
You have lots of equity BUT I guess FA would much rather you move to another lender as you are costing them money.
You can only ask.
If they wont pay ball then consider an offset mortgage for the whole amount needed £178K and put the £50K in the offset account until needed for the building work.
First Direct and YBS have good offset mortgages

Aberdeen_Taff

Cheers - that's food for thought and not something I would have thought of myself. I'll see what FA say about it but I guess they're not making much out of me just now.

dimbo61

First active now Natwest home loans and part of RBS so you need to ring them and see what they can offer you as an existing customer but if you can consider at least 3 years and better still 5 year fix for extra borrowing ( check if overpayments allowed) and if you can Overpay the part of the mortgage with the highest rate !!!
good luck with the extension

Aberdeen_Taff

I take it any thought of taking the extra £50k has to be with FA and not with a different lender?