Further Advance vs Secured Loan?

bignose-strikes-again

Hi,

My partner and I have our mortgage with Yorkshire Building Society, a 5 year fixed deal that ends in June 2008. Two years ago, we took out an additional loan with YBS to fund some home improvements. This was a 2 year fixed further advance.

The 2 year fixed deal runs out at the end of March and we are trying to decide how to continue with this borrowing. The rates that YBS are offering are OK, but the minimum term is 2 years, which would take us beyond the end of our main mortgage deal with YBS. I would love the flexibility to take the whole borrowing (ie mortgage and further advance) elsewhere from June 2008 and wrap it into one loan.

The only way I can think of is to take out a secured loan (amount is £23k) to cover us until June 2008 and then redeem both at once with a new mortgage. My partner is very wary of secured loans though......any opinions or advice gratefully received!!

Thanks in advance!

Mr_helpful

Simple. Dont do anything. YBS will put the further advance on to SVR but you will have no penalty when the time comes to remortgage. This I think would be cheaper than going down a secured loan route and redeeming.

bignose-strikes-again

Thanks for the advice!