Adding on to mortgage to make improvements?

Pandora_Peroxide

Got my mortgage in 2003 - borrowed £76k against a property bought for £85k. Up-to-date with all payments etc.

We have decided that a move is out of the question as property prices are so expensive. We wnt to make improvements to our houe. Have started with windows which we have available cash to pay for still leaving us with a few grand of savings.

Thing is we want new heating but still want to keep savings just in case. Do you think the bank will allow us to add a little bit to our mortgage to make these improvements? Owing to pay increments and promotions I earn considerably more that I did when we signed for the mortgage. Mortgage based on my salary but in joint names, it was easier that way as hubby is self-employed so income can vary. Looking to add around £7k. Property now worth about £130k and I earn £30k.

catt_2

Pandora

To raise more money you can:

1. Re-mortgage, either with your existing lender or another. You don't have to move house to do it;

2. Apply for a further advance, also called a second or subsequent charge. The interest rate will be higher than your mortgage. Again, same lender or any other.

3. Get an unsecured loan. Most costly interest rates but no arrangement fees.

Have another read of Martin's main site for his advice if you have savings. Take account of the tax on savings interest earned.