Bigger mortgage or Secured Loan??? Whats best??

devmcc

Hi all... looking to pay off some debts and extend the house.. just pondering which would be best a bigger mortgage or a secured loan???
Here are the figures:
Existing mortgage £140000
Property value £280000
Looking to borrow £65000
Debts £25000
Extending costs £40000
Had the house for a year - A1 credit history.
Joint income of around £65000
One problem is we are both self employed and do our own tax returns so do not have audited accounts.
Looking to pay around £500-600 back a month.... any advice would be marvellous!!

:T

Conrad

A secured loan is likely to be some 2% higher than a remortgage, however you may have to pay a large ERC for cancelling existing mortgage.

Have you thought about a further advcne from your current mortgagor? Likely this could work out best but clearly your stated earnings need to fit within thier income multiples.

Dan_Collins_2

Depends on lender you are with. If no ERC then remortgage, even self cert would be better than secured loan!

If it is northern rock you are with they may lend the amount on the same rate as your current product.

devmcc

Hi there - thanks for replying!
We are just knocking some figures around first (and waiting for the planning dept to accept our extension plans)!!
Will give them a bell and see what they think....

devmcc

No not Northern Rock - though I do have a few dodgy shares with them!!

It is with Standard Life - I do have ERC but my tie in ends next year so could hold on....