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"Additional loan" with mortgage lender - house refurb - when to apply?
Hi all,
We have just instructed an architect with a view to getting our house renovated Spring 2017 (I have a work sabbatical at that time).
I have spoken to current mortgage lender on the phone and they have agreed to give us a certain sum, all affordability worked out etc, and they asked if I wanted to apply today. This loan is at the SVR which is at the moment 3.99%.
However it can be merged with our existing mortgage when the time comes to get a new deal, that is Feb 2017.
My question is: when to take out this loan? It seems premature to do so almost a year in advance: we will be sitting/paying interest on a pile of money we don't yet need. However I am anxious to secure the funds in case things change and the loan becomes less affordable.
No other debts. Our financial/employment situation is very stable.
Many thanks for advice.
We have just instructed an architect with a view to getting our house renovated Spring 2017 (I have a work sabbatical at that time).
I have spoken to current mortgage lender on the phone and they have agreed to give us a certain sum, all affordability worked out etc, and they asked if I wanted to apply today. This loan is at the SVR which is at the moment 3.99%.
However it can be merged with our existing mortgage when the time comes to get a new deal, that is Feb 2017.
My question is: when to take out this loan? It seems premature to do so almost a year in advance: we will be sitting/paying interest on a pile of money we don't yet need. However I am anxious to secure the funds in case things change and the loan becomes less affordable.
No other debts. Our financial/employment situation is very stable.
Many thanks for advice.
0
Comments
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I doubt very much interest/mortgage rates will change in the next year, unless of course we vote for brexit then all bets are off0
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I am not sure you need to engage an Architect to renovate your house.
Apply a few months before you need the funds.0
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