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Remortgage + equity line
boglehead
Posts: 168 Forumite
Hello,
I am getting toward the end of my mortgage fixed period, and need to remortgage within the next 3months.
According to the MSE tool, i can get 5 years fixed at 2.09% which is roughly the same rate that i currently pay for my existing year 2yr fixed, so i am pretty happy with that.
Given how attractive the rate is, and that we were planning to build a roof extension to accommodate a 3rd bathroom, i was wondering whether i could finance the work by borrowing an extra £25k as part of the mortgage.
Our current LTV is 49% and that extra £25k would tip it to 51%, which still secures that 2.09% rate.
Do you know if this type of mortgage equity borrowing deal still is possible these days? I vaguely remember a work colleague financing his kitchen extension that way a few years ago... But things change so quickly with mortgages, i am not sure anymore.
I called my current mortgage provider (woolwich) who told me they could only offer a classic 5yr home improvement loan at 5%, which makes the repayments 5 times higher than adding it to my mortgage.
Thanks for your input
I am getting toward the end of my mortgage fixed period, and need to remortgage within the next 3months.
According to the MSE tool, i can get 5 years fixed at 2.09% which is roughly the same rate that i currently pay for my existing year 2yr fixed, so i am pretty happy with that.
Given how attractive the rate is, and that we were planning to build a roof extension to accommodate a 3rd bathroom, i was wondering whether i could finance the work by borrowing an extra £25k as part of the mortgage.
Our current LTV is 49% and that extra £25k would tip it to 51%, which still secures that 2.09% rate.
Do you know if this type of mortgage equity borrowing deal still is possible these days? I vaguely remember a work colleague financing his kitchen extension that way a few years ago... But things change so quickly with mortgages, i am not sure anymore.
I called my current mortgage provider (woolwich) who told me they could only offer a classic 5yr home improvement loan at 5%, which makes the repayments 5 times higher than adding it to my mortgage.
Thanks for your input
Total Debt
12/2012 - £893k (mortgage and toys loans)
11/2019 - £556k (mortgage only)
12/2012 - £893k (mortgage and toys loans)
11/2019 - £556k (mortgage only)
0
Comments
-
Yes you can do this - subject to affordability - no problem.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Great.
Is it just something I need to tell my broker when I remortgage (I use London and Country) and he would use this in his search criteria?Total Debt
12/2012 - £893k (mortgage and toys loans)
11/2019 - £556k (mortgage only)0
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