adding 10 grand to my mortgage

_Andy_

maninthestreet wrote: »

An unsecured loan is likely to be over a much shorter time period then the OP's mortage has left to run, so may well work out cheaper in the long run.

the further secured borrowing would be a new product which could be taken out over a term of the OP's choice (e.g. shorter than the mortgage) so my point still stands.

acstokes

Thanks for all the comments guys and gals - makes interesting reading. I dont want the money just to sit in my account etc. Its for a project/potential business venture.

Does that make a difference to anyones comments or suggestions?

_Andy_

Your lender may not lend for that purpose.

Joe_Bloggs

That 238 a month for a 59K mortgage must be at a very good interest rate.
It would be a shame to lose it and then pay even more interest on the 69K.
J_B.

acstokes

_Andy_ wrote: »

Your lender may not lend for that purpose.

why not? (genuine question)

I have an excellent credit rating, i'm in full time employment with earnings in the 35-40k bracket (pre bonuses) and apart from my mortgage, i have no others debts. my property has circa 50k equity in it, why wouldnt a lender allow me to free it up if i can afford the new repayments?

_Andy_

acstokes wrote: »

why not? (genuine question)

I have an excellent credit rating, i'm in full time employment with earnings in the 35-40k bracket (pre bonuses) and apart from my mortgage, i have no others debts. my property has circa 50k equity in it, why wouldnt a lender allow me to free it up if i can afford the new repayments?

Because it's often seen as a risky reason to lend. You need to ask your lender if they lend for that purpose.

maninthestreet

Mortgage lenders aren't venture capitalists.

theoretica

You could also keep your current tracker (if you want a tracker that is, it is probably at a good rate) and see if your present lender will give you further borrowing on top. The further borrowing would be at a higher rate than your present tracker, but the average rate might work out well, especially if you could pay it off early.

acstokes

Thanks guys! the synopsis here seems to be that there are a number of options open to me which all have their pros and cons. The questions now is, do i speak to an IFA or the bank regarding he best solution for me.....?

_Andy_

Depends on whether your lender allows borrowing for business purposes. Obviously if they don't then you'll have to look elsewhere anyway.