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Advice on additional borrowing
thetigerwhocametotea
Posts: 23 Forumite
We have £280k equity in our house which is currently valued at £480k. 18 years left on the mortgage.
We are looking to borrow £40k to do some work to the garden and house and buy a new car. We have 3 kids at uni for the next four years between them costing us a huge amount of money each month. Once the next 4 years years are over our intention would be to overpay the additional borrowing as quick as possible.
We are currently with the West Brom tracking at .99% above BofE base rate for the main part of our mortgage. The extra £40k would be on their SVR of 5.44%.
Should we go with that or look to remortgage for the whole £240k elsewhere? Obviously the rates are going to rise sooner rather than later and we're not worried about meeting the repayments as we both have good incomes and safe jobs just not sure what is the best way to go seeing as the first part of our mortgage is such a good rate at the moment.
Any advice appreciated.
We are looking to borrow £40k to do some work to the garden and house and buy a new car. We have 3 kids at uni for the next four years between them costing us a huge amount of money each month. Once the next 4 years years are over our intention would be to overpay the additional borrowing as quick as possible.
We are currently with the West Brom tracking at .99% above BofE base rate for the main part of our mortgage. The extra £40k would be on their SVR of 5.44%.
Should we go with that or look to remortgage for the whole £240k elsewhere? Obviously the rates are going to rise sooner rather than later and we're not worried about meeting the repayments as we both have good incomes and safe jobs just not sure what is the best way to go seeing as the first part of our mortgage is such a good rate at the moment.
Any advice appreciated.
0
Comments
-
Why remortgage when you are on such a good rate?
Unless the West Brom decline the additional borrowing of course.0 -
No, they've agreed the additional borrowing.0
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