Taking second charge on mortgage

MaxTaz

I want to 'borrow' against my equity, for example house is currently worth 100K, (remaining mortgage is 65K), want to borrow 10K against mortage to put in a new kitchen/bathroom etc... which will enable me to sell house for 125K. Make sense? Any receommendations, ta!

herbiesjp

You could go to your existing lender and ask the if they will lend you the extra money for the home improvements or if the deal they offer is not that good you could re-mortgage elsewhere and do the same.

mrcow

Hi MaxTaz,

Depending on circumstance.....

If you're only looking for 10k for kitchen/bathroom, then rather than putting it on a long term mortgage agreement and paying someone else interest, you can always look to pay it off under 0% on credit cards?

This obviously depends on whether you are able to get credit card limits high enough to cover the purchases? And you just have to keep an eye on the offers. If you take a look at the credit card section on the forum, there's loads of info on current 0% or very low APR offers.

We purchased our kitchen on our MBNA card last year, and then balance transfered to our Virgin card and have had 6 months @ 0%. This is going to run out next month, and so have just balance transferred it again to a new Halifax 0% offer for 9 more months (by which time we should have been able to pay it off).

It's just a thought........

Another idea..... do you have any ideas as yet where you are going to be buying the kitchen & bathroom from? As many companies offer 0% interest free credit for a couple of years etc, it's worth a look too.... and definitely worth a haggle over such large purchases!!!

If the credit card or interest free options are not open to you......then does your current mortgage have any current tie-ins?