Loan versus adding amount to Mortgage

taka

Does anyone have any suggestions as to which of the following is a good idea?

Current Mortgage (origionally £54k 25years taken out Dec 2002)
~£48,489.10 outstanding as May 07 and 20 yrs 6 months(?) left to go on rate = 6.74% SVR

I want to take out a fixed rate for 5 years (have been looking at Nationwide 5yr at 5.63% as I'm with them at the mo so only £399 fee to pay). I would like to sort this out in the next month or 2.

I need to borrow ~£5k in order to renovate my bathroom and general plumbing. I would like to borrow this in the next month or 2.

I may also need to borrow ~£4k in order to fix the communal roof. It may be much less than this but this is the worst case senario figure. I may need this soon or in a few months time or not at all (depending on the amount as I will be saving in this time too)

So my plan was to increase mortgage to cover bathroom costs at the time I fix the rate on the origional amount - Mortgage back to approx £54k again (still 20yrs odd term) and prob have to take out a loan to cover the roof repairs.

Can afford to overpay loan/mortgage/whatever by about £202/month for the next 4 years at least.

Anyone got any idea of what I should look into as alternatives? Would I be better taking out a loan for the Bathroom repairs rather than adding to the mortgage? All suggestions/calculations welcome!!

Thanks in advance

Taka

ailuro2

Could you take out a mortgage for the full amount you think you'll need then put both amounts into the overpayment fund until you need them- make sure you keep it accessible though,not overpay it permanently- our overpayment fund works like that-any money we have overpaid remains accessible as a lump sum should we need it.
Then you can overpay back any remainder after all the works are complete, and then proceed to overpay by more than a loan amount would be, as letting the extra money go on for long will cost you more in interest if done over the longer term.

You would ned to be quite disciplined to do it this way though,make sure you overpay by enough to get rid of the extra debt quicker than a fixed term,higher cost loan.