re-mortgage advice needed please.

hunnybugs1

Hi guys
I wonder if anyone on here could give me advice on how best to fund our extension? At the moment we have a mortgage with Alliance and Leicester which consists of:-

£31395 at an interest rate of 0.5% above base rate so we are paying a 1.49% base rate (variable)

14108 at an interest rate of 4.99% (fixed)

My question is whether it is best to:-

a) go with another lender and consolidating the loan (we should need another £20000 roughly) or

b) leave the existing debt where it is and add to it or

c) find the best mortgage rate for the new borrowing and keep it separate.

I am most confused as the initial rate is a very good deal at the moment.

dimbo61

Well first port of call should be A&L and see what they can offer as the £31395 is currently on a very low rate of 1.49%
You dont give your LTV or income ETC but try A&L and then have alook at what other lenders can offer.
If you do end up with 3 parts to the mortgage try and overpay which ever part has the highest interest rate