Remorgage early? Best way to pay for extension?

lindsaygalaxy

Hello

We are looking to build an extension, costing around £35,000. We only bought the house last year with a 90% 3 year fix mortgage at 4.49%. The house now has around £80k in equity due to home improvements/ house values going up (plus the 10% deposit we put in). I calculate it would cost around £5k to pay off ERC (2%) and remortgage (same company) but at a new lower rate of 1.79% (because of the lower LTV). We would then need to borrow against the house with their additional borrowing to pay for the extension.

Alternatively, we could just do the additional borrowing and get a new fix in just under 2 years time. We would also be looking at combining a small loan we took out to pay for additional costs when we renovated the house.

I am currently 7months pregnant and worried about the effect of childcare costs if we look at getting additional borrowing later on.

Any suggestions on the best way? Thank you

getmore4less

Won't be much good if you get it now and then cannot afford it 12months time.