Re-mortgage options

mandm65

Guys
Just need small clarification. We would like to re-mortgage our property which is currently on rent with lenders consent. We only have 7K left and can pay off now if required. We would like to re mortgage the house to get some cash which we need to renovate/extend our current house.
We unsure what would be best option for us.
Pay off the remaining balance and then re mortgage the house with a new lender (our existing lender does not have BTL products), our existing product is BoE +2%
Re mortgage the property with a new lender and port the outstanding 7K, appreciate that we will lose the benefit of the existing product.
Just want to understand the pros and cons of the both options.
Thanks.

Yorkie1

You can't port the £7K to a new lender. 'Porting' refers to when you sell one house and buy another.

mandm65

oh, that probably explains why so many views but not many response.
Anyway under the circumtances, what would be my best option?
Cheers

anselld

mandm65 wrote: »

oh, that probably explains why so many views but not many response.
Anyway under the circumtances, what would be my best option?
Cheers

Looks like you only have one option left. Remortgage with new lender and pay off the £7k.

Bear in mind though that the various fees for a new BTL mortgage might not make this the cheapest way to raise capital for a (relatively) small amount.

Can you not get further advance on your residential mortgage for the extension?

mandm65

anselld wrote: »

Looks like you only have one option left. Remortgage with new lender and pay off the £7k.

I guess you mean pay 7K first and then Remortgage.

anselld wrote: »

Can you not get further advance on your residential mortgage for the extension?

That would been ideal but we streached the limit when we bought the house its not an option right now but perhaps in couple of years time when have paid some of the capital.