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building an extension...

james3333
james3333 Posts: 752 Forumite
in Mortgages & endowments
hi all,
not really sure which place to put this thread but here goes...
i want to build an extension for £20k ( roughly)....
i have £13,000 in savings
i have £50k equity in my house

i would like to keep my savings as they are, but want to know the best way to finance the extension....?
loan? extend mortgage? credit card(s)?
ideally pay it off over 4 years, so obvioulsy want to get best interest rate i can....
how would you guys do it?

thanks!

Comments

  • kingstreet
    kingstreet Posts: 39,316 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Additional borrowing from existing lender. This will be a separate sub-account to your current mortgage, so your current rate will be unaffected.

    The contractual term will probably be the same as your current mortgage, but if you pick (eg) a penalty-free tracker for the new money you should be able to voluntarily overpay as much as you want to repay the loan as fast as you can.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • james3333
    james3333 Posts: 752 Forumite
    ok, is this the general opnion?
    also, what sort of rate (roughly) might i be looking at with halifax (my existing lender)... when i look online at personal loans its at 5.8%!!...
  • kingstreet
    kingstreet Posts: 39,316 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Don't look at personal loans then!

    Look in the mortgage section at additional borrowing.

    http://www.halifax.co.uk/mortgages/existing-customers/additional-borrowing/
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • james3333
    james3333 Posts: 752 Forumite
    ahh! ooops...thanks!
This discussion has been closed.
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