adding 10 grand to my mortgage

firesidemaid

hello.

sorry if this has already been covered. but with your earnings and no other debts, you must have quite a lot of disposible income.

do you not have any savings? with a bit of reduced spending, you could probably raise/save the 10k in 6-10 months?

betmunch

Stay the hell out of a bank, go to someone that knows what they are doing, or do it yourself.

acstokes wrote: »

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.....?

scobby17_2

acstokes wrote: »

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.....?

Talk to them all. Get the best possible deal from your existing lender and then see if the IFA can beat it.

A mortgage that tracks the base rate seems a good option for the moment at the Base rate is soo low, as long as the uplift is not too high.

lagi

I needed to add £20k to my mortgage and wished i had looked at other ways of doing it. I thought it was quite simple to add the amount on but its now split into 2 mortgages, different rates. Also mine became staggered, so when one deal runs out i have to wait a few months for the other before i can look at new deals.

If your in a position to pay it back quicker than the length of a mortgage, then i would look at borrowing from elsewhere.

Amy56

I am about to come to the end of my fixed rate and am also thinking of adding £10k for the purpose of buying a new car, whilst securing a lower rate than I have been paying for the last 4 years!!;) I know that the majority will think it is madness to add £10K for the prupose of buying a car - so my question isn't so much should I do it, but rather are the banks still allowing capital raising for any purpose? Or have they gone back to tightening the rules (eg only allowing additional lending for home improvements etc)

Many thanks for any help:)

Fiddlestick

Amy56 wrote: »

I know that the majority will think it is madness to add £10K for the prupose of buying a car - so my question isn't so much should I do it, but rather are the banks still allowing capital raising for any purpose?

Of course it's madness - you are borrowing the money at a long term interest rate to purchase a liability that will rapidly depreciate in value.

If you really do have your heart set on borrowing 10,000 pounds to buy a car, would it not be cheaper for you to take finance or a bank loan for it?

I'd look into how much extra mortgage interest that 10,000 would cost you versus whatever vehicle finance or a bank loan would charge.

Just because the mortgage might cost you less in outlay each month doesn't mean that it's cheaper over the long term

I won't tell you not to buy your car (plenty of other people can do that) but if you really do want to do it, weigh up your options first.