We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Overpaying mortgage to then have some additional borrowing

g3m
Posts: 3 Newbie
Hi, i hope someone can help!
We would like to take out some additional borrowing on our mortgage for a loft conversion but currently Nationwide wont let us as we haven't paid off enough of our mortgage to allow for it. So, would it be worth overpaying our mortgage until we have paid enough off to allow for some additional borrowing? We could of course save the money rather than take it off the mortgage but I think that way would take longer for us to raise enough money....? What do you think?
TIA,
G3M
We would like to take out some additional borrowing on our mortgage for a loft conversion but currently Nationwide wont let us as we haven't paid off enough of our mortgage to allow for it. So, would it be worth overpaying our mortgage until we have paid enough off to allow for some additional borrowing? We could of course save the money rather than take it off the mortgage but I think that way would take longer for us to raise enough money....? What do you think?
TIA,
G3M
0
Comments
-
impossible to say without you providing some numbers0
-
What interest rate are you paying on the mortgage?
How much equity do you have in the property?
Income , age etc0 -
Ok....
We still owe £148000, Nationwide value our home at £167000 (this isn't correct but they don't care about that!) We're 30 with 20 years left on our mortgage. We can afford to overpay/save £500pcm but already have £8000 in savings. Our interest rate is 2%.
G3M0 -
If you are only paying 2% on your mortgage you will get a cash ISA,s which pays more interest!
Now nationwide are unlikely to lend you any more money for some time as your LTV is what 90% ( according to Nationwide!!)
I would build up savings in cash ISA,s to pay for the work while paying the normal mortgage payment.0 -
-
If you are only paying 2% on your mortgage you will get a cash ISA,s which pays more interest!
Now nationwide are unlikely to lend you any more money for some time as your LTV is what 90% ( according to Nationwide!!)
I would build up savings in cash ISA,s to pay for the work while paying the normal mortgage payment.
What he said. It would be madness to overpay a low rate mortgage. Just save in cash ISA's and pay for your conversion outright.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
A mortgage is a loan, not some sort of savings account.
Part repayments to a mortgage should really only be made if you are sure you don't need the money for any other purpose and want to reduce the mortgage
Mortgages shouldn't be used to put money in, and then get the money back out again by way of a further advance.
As the others have said save up for your improvements and get a smaller further advance when you canEarly retired - 18th December 2014
If your dreams don't scare you, they're not big enough0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards