Re-Mortgage Advice Re-Building Extension

bosnian

Hi, any advice from yourselves would be much appreciated.
I'm looking to build an extension which has been priced up at 25k.
I currently have 107,000 left on my mortagage but with an overpayments reserve of 13k. Value of house is £190k.

Here is the dilema. I will recall the my 13K which will leave me needing 12k. I'm currently on the SVR of 2.5 with Nationwide. Will lenders be prepared to give me a second mortgage of 12k with a new rate or will Nationwide try to get me to remortgae the whole amount to get me off the 2.5 SVR.

Would I be better of getting a loan to finance the 12k, Remortgage or dip into my only savings of 8k.

Any replies would be appreciated.

Kind Regards

herbiesjp

You can either get a further advance from Nationwide, get a personal loan, or get a secured loan.

The choice is yours.

bosnian

Thanks for the reply. In regards to getting an advance from Nationwide are they likely to give me a second mortgage or is it normall practice for them to extend my mortgage. With such a low rate of 2.5 I'm happy to ride it out for a little longer before fixing.

Anyone been in a similar situation with advice as to what to do ?

ab7167

from my experience with Nationwide, they will let you keep whatever is outstanding on the 2.5%, but will give you a new mortgage deal for the difference.

We bought a new house earlier this year, and were allowed to keep the £180k @2.5% and had to borrow £14k to finance the difference between old and new house. For this £14k we could choose from any of their existing mortgage offers, I think we fixed for 2 years at 4.69%.

So when I log into my internet banking, I now have 2 mortgage products with them.

We are also looking to build an extension next year, with almost the exact same figures as you (£28k total, £18k saved), so we will probably end up with a third product with them for the 10K difference unless we can find a personal loan cheaper.

Even though it is 2 products with Nationwide, it doesn't count as 2 mortgages, just one that is split into a couple of bits.

bosnian

ab7167 thanks very much, great help :beer:

bosnian

One last question. With the 2nd product ie. extra £12k from nationwide - Do you have to take that product out over the same term as existing mortgage (mine is 15yrs left) or can you just say for example take it out for a shorter period for example5 yrs ?

Many Thanks

ab7167

We took ours over the same period initially, but we are overpaying with term reduction so they now have different terms. One of your mortgages will be the 'lead' mortgage, and I *think* this one has to have the longest term - so your extra bit must be over the same term or less than the original bit. It's a bit odd for us as I think they made a small error and our additional £14k is actually our 'lead' mortgage with the original one listed as 'additional borrowing'. Doesn't matter at the moment, am pretty sure it won't in the future!

ab7167

Unless they always do it that way round...