Borrowing more for home improvements

Mrs_Noods

Hello,
I am considering having a new kitchen and have a few questions around borrowing through our existing mortgage lender. Our existing mortgage is with Nationwide at about 150k with 21 years remaining. Our house value is at just over 230k so borrowing around 15k shouldn't be a problem.

Our existing mortgage is fixed until end of March 2017. If I borrow 15k for home improvements through our current lender now, I understand that this will sit as a separate mortgage and wont be just added onto the current amount we owe, and will therefore be two separate direct debits.

What I want to know is at what point can I get 'both mortgages' into just one? Am I best borrowing the new amount on a 2 year fixed from Oct 2016, renewing our existing mortgage in March 2017 on a two year fixed, and then in March 2019 apply for the 'total' amount as one mortgage (guess then we'll get a better rate on the additional 15k if it's all rolled into one with the rest)??

Is this the best way or am I missing something?

TIA

Thrugelmir

Do you expect your kitchen to last 21 years?

Mrs_Noods

No idea - probably wont live there in 21 years. What's your point?

amnblog

One of our new clients is in the exact same situation.

You can do as you suggest leaving your top up on the basic rate for six months or so to 'catch up' with the main lending.

A lot depends on your longer terms plans and if you are in a position to overpay.

frazell

If you have a good credit rating, credit card limit and the kitchen company will accept CC payments then you are probably better off buying on 0%.

In march when you remortgage you can "wrap" all the money together and pay down the credit card with some additional borrowing.

Glover1862

Why don't you just wait until March 2017 and then apply for extra funds to cover the Kitchen. You could start looking at products very soon, you might even move up in LTV, save you a lot hassle with two mortgage accounts.