raise money on remortgage or loan?

winnywood

Hi all firstly my info
Current mortgage info
Amount outstanding £109500 = 18yrs 6 mts
Current rate 2.99% ending 01/05/13 then svr 4.9%
Property value £190000 LTV = APROX 57%
On offer from bank yokshire bank 2yr fr 2.59% 3yr fr 2.89% 5yr fr 3.19%
All at 60% LTV

I want to raise £15000 which will put me over 60%LTV so 2yr fr 2.89% 3yr fr 3.19% 5 yr fr 3.59%

The bank is offering loans for £15000 @ 5.1% APR 2.69% PA fixed for 7 years

Im thinking of taking loan and then sign up for 2 yr fr 2.59% and then in 2 yrs remortgage and pay loan off.

Any advice many thanks.

Thrugelmir

Are the funds to be used for home improvements?

winnywood

Basically yes about £4000 will be used to pay some debts off.
I dont want to increase term.
Monthly mortgage is about £620 PM loan would be £212 pm i know its not the cheapest way on monthly money but dont want to take two steps forward and then three steps back on mortgage.
If i take money on mortgage i will have to pay valuation fees if i stay with current lender.