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Additional Borrowing
Adele75
Posts: 15 Forumite
Hi
We are coming to the end of our fixed mortgage which will see our interest rate drop from 5.29% to 2% (base rate tracker). Our monthly payments will reduce to £607 from £761. We have £94,000 left to pay on our mortgage and want to take out additonal borrowing of £16,000. We have 15 years left on our mortgage and our house value is £175,000. We have been given the option to keep the existing balance on the 2% rate with various options for the additional loan.
4% variable @ £118 per month
4.69% 2 year fixed @ £123 per month
5.89% 5 year fixed @ £134 per month
My first question is should I stay with the 2% base rate tracker for the existing mortgage and go with one of the options above for the additional borrowing OR combine the two amounts and look for a low fixed 5 year mortgage deal?
Secondly if I stay with the 2% base tracker rate which of the above options would you consider?
Thanks in advance!
We are coming to the end of our fixed mortgage which will see our interest rate drop from 5.29% to 2% (base rate tracker). Our monthly payments will reduce to £607 from £761. We have £94,000 left to pay on our mortgage and want to take out additonal borrowing of £16,000. We have 15 years left on our mortgage and our house value is £175,000. We have been given the option to keep the existing balance on the 2% rate with various options for the additional loan.
4% variable @ £118 per month
4.69% 2 year fixed @ £123 per month
5.89% 5 year fixed @ £134 per month
My first question is should I stay with the 2% base rate tracker for the existing mortgage and go with one of the options above for the additional borrowing OR combine the two amounts and look for a low fixed 5 year mortgage deal?
Secondly if I stay with the 2% base tracker rate which of the above options would you consider?
Thanks in advance!
0
Comments
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These are all pretty much a matter of opinion and personal circumstances. Only you can decide what's right for you and your situation.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.0
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