Remortgage / Further Borrowing?

easylife73

Hi, hoping someone can advise!

We currently have two mortgages with Nationwide, both at 2.5%. The main mortgage is at just over £86,000 and was from when we bought the house, and the second is just over £26,000 from about 5/6 years ago when we extended upstairs, so our total mortgage debt is about £112,500.

We are looking at turning our conservatory into a proper room and knocking through from it into the kitchen, and refitting the kitchen once the work is done. The quotes for this are coming in around the £30,000 mark. We would need to borrow about £25,500 to do the work, which Nationwide are provisionally happy to do, so our total mortgage debt would go up to about £138,500. The third mortgage would be at 3.44% if we fixed it for 5 years with Nationwide.

Alternatively, I assume we could remortgage with another lender for the £138,500 and fix the whole lot at a lower interest rate. On the face of it this would seem to be the best option, for stability and the lower interest rate. However, I am trying where possible to start overpaying the mortgages. Is there any benefit to keeping the three mortgages separate rather than combining them into one fixed mortgage?

Thanks in advance for any help!

Thrugelmir

I would hang onto the 2% above base mortgage rate that you have. Once lost you may never obtain it again.

easylife73

Even if we could get a 5 year fix on the whole amount at less than 2%?

ethank

What is the current property value?

Thrugelmir

easylife73 wrote: »

Even if we could get a 5 year fix on the whole amount at less than 2%?

Where are you expecting to obtain a sub 2% rate from ?

easylife73

Property value is about £184,000...searches showing fixes with several companies under 2% with LTV of 75%, eg Post Office

Thrugelmir

easylife73 wrote: »

Property value is about £184,000...searches showing fixes with several companies under 2% with LTV of 75%, eg Post Office

and the follow on rate once the fixed product term expires?

Post Office product is only for a 2 year term.

easylife73

At work at the moment so can't see where I found it from, but sure there were longer fixes under 2%...will check later when I get home! From memory, the rate after the fix was about 4.something

kingstreet

AFAIK there's nothing under 2.49% fixed for five years, even at under 60% LTV.

easylife73

Have just had a quick look, and I must have looked at so many that I got a bit confused! You are right of course, there are no 5 year fixes under 2%. There are some under 3%. So am I better to fix the whole amount at that level or keep with the two 2.5% mortgages and take the third out fixed at 3.44%?