Borrowing more during 5 year fix

freeman3030

Hi,
We're currently 16 months into our 5 year fixed deal with Co-op. We had a 5 year plan for this house, to do it up and sell it on once we're out of our fixed period. We've half done up the house with money we made off of our last property. I've worked out roughly that £10k would finish off the house and enable us to enjoy it a bit before we sell and move to another doer upper.
We've talked about taking out a loan to do the work, but my partner is reluctant because he doesn't want another £180 per month bill. So I suggested maybe looking into borrowing a bit more from our current mortgage provider. How does it work and is it even possible? Do we remortgage, (which I can imagine will involve an early repayment charge) paying off our old one and taking out a whole new mortgage with the extra £10k we would like. Or do they just add £10k at whatever the going rate is for the remainder of our mortgage term?

Money_Rollercoaster

I'm pretty sure their solution would be to offer secured lending supplementary to your mortgage.


http://www.co-operativebank.co.uk/mortgages/borrowing-more


Their site isn't very clear, but you could call them.


Are you happy to secure the debt against the house?
What's the cost in interest / fees etc over and above a personal loan for the same amount?
What are the limitations on over-paying?

amnblog

Yes, Co-Op will lend you extra based on current rates subject to underwriting considerations such as affordability and loan to value.

Your current lending on the 5 year rate will not be affected.

freeman3030

Thank you. I did look on their website before posting but didn't see the section on borrowing more, so thank you for the link to that.
We put down a 20% deposit when we purchased and if zoopla is anything to go by our house has risen over 30k in value.
I'm not bothered about securing the debt against the house because we only plan to use the money for home renovations which will make it worth more/make it easier to sell.
I'm not worried about over paying the mortgage as we do plan on selling it after the 5 year fix ends.
I think I'll be giving them a call once we've spoken in a bit more detail about costings and what we plan to do.
Thank you for the help, it's been great!