Gmac. Further advance or remortgage?

moatmeister

Hi

I have an interest only residential £105k mortgage originally with Gmac, now Paratus AMC. Was taken out in 2004, been running fine ever since. House sale price currently £140k realistically, possibly up to £170k after proposed makeover with refurbed kitchen and bathroom etc in current market conditions.

Not sure of exact rate but its libor based with payments approx £270/month.

Would like to raise some money against house for refurbishment but current provider no longer does any further lending.

Could I/Should I get a second charge loan from elsewhere and if so,where, or re mortgage completely to a more flexible product? Any other options? Cheers

Gary123456790

Hi,

What investments do you have in place to repay the mortgage once the term is finished?

If you were to increase the mortgage amount the payment would increase. If you can afford this increase, then you must have some spare income.

A much less risky way of doing it would be to save this spare income each month and use that to improve the house.

Borrowing extra money against your home can be storing up problems for the future. It always costs you more, especially on interest only because you are not clearing the mortgage at all each month, only treading water.

Gary.

moatmeister

Anyone else care to comment specifically regarding further borrowing options please?

moatmeister

Anyone else care to comment specifically regarding further borrowing options please?