Add to mortgage or loan?

Decopatch_queen

hi, advise please, which is better for extension to home. Add to mortgage or loan.

I currently only have approx £15,000 left on my mortgage over 9 yrs. no credit cards outstanding, but need to extend my home.

is it better to add to mortgage and possibly extend the length of time outstanding to save paying much extra per month. or get a separate loan, probably looking at an extension for about £25,000. - only have
approx £3000 in savings.

thanks in advance.

smifffy1989

Depends on affordability and loan to value.

Mortgage you can pay it off over a longer period and you would only have one payment instead of the loan and the existing mortgage.

Loan has the benefit that provided you pass the credit check and affordability check they will lend you the money and it will be in your account that day or the next working day. I would probably given your circumstances go for the loan over a 6-10 year period and look to overpay the loan as soon as I could.

Have you budgeted for contingency? Also have you had a look how much the ideal home would be? Extensions are not easy undertakings.