Remortgage and possible loan

mrsskinto

Hi all,

Apologies if this question has been covered lots of times before.

From September this year myself and OH can switch product with Halifax, currently on 2yr fixed at 5.9 as were FTB. We will be on a LTV of 80%

I believe you don't have to go through checks again if your just switching to a different rate which would mean a 3% decrease according to their website currently, thing is I do want to change the term by keeping the payment nearly the same but reduce the term by 5 years.

Problem is we want to get a loan of 10k for a small extension, we have savings aswell, so we will be income checked again, we have joint income of 48k no dependants no other debt and currently have 18 years left and owe 104,000. Can anyone advise if they can envisage any problems in remortgaging?

Hope I've made sense!

Thanks in advance:)

Thrugelmir

If you amend the term of the mortgage or apply for additional borrowing. Then you will be subject to checks.

In principle your household income supports the amount you wish to borrow. So shouldn't pose any problems.

When setting the mortgage term do bare in mind that interest rates may rise in the future. Maybe easier to simply overpay your mortgage than shorten the term.

mrsskinto

Hi

Thank you for your quick reply, I get what your saying about overpaying and consider interest rates rising but I feel you have to be really disciplined to make that over payment every month, there's something physiological to me reducing the term thinking I have knocked off five years, but will think about your suggestion.

My main worry is, if we have to go through checks again with the addition of a loan would it effect our chances, but you have answered that now.

Thank you