Financing a house extension

mac24

Hi all,

I'm looking to get a single storey extension on my home.
The cost of which will be around £35k when all complete. I have around 10k in savings to put toward it but need to finance the other 25k. My current mortgage is around 90k and the house is worth around 275-285k.
I was thinking of adding this to the mortgage but am currently 4yrs into a 5 yr fixed rate. Im guessing I would have to take out another mortgage (thus incurring fees? ) until such time I can tie the two debts together.
I thought about a short term loan but I think the monthly repayments may be a little too cutting.
Do current mortgage providers allow you to add to your existing mortgage without the need for taking out a whole new separate deal?

Any other ideas I may have missed?
Cheers
MAC

amnblog

Your lender will most likely offer you the extra £25,000 on a top up rate.


That is not necessarily the best option however, and you can get a top up (second charge) mortgage over a long term from an alternate lender for the £25K leaving your current mortgage as is.


Consult a broker.