We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

mortgage and new loan

Please help, I'm confused!
We have an £80,000 mortgage £48,000 of which is capital and interest. The balance we will pay with an endowment which is for £45,000 which is just as well because it will only just reach what we actually need.
We want to build an extension and will need to borrow £20,000. I am about to re-mortgage prob. with another fixed rate for next 2 or 3 years.
What is the best way to raise the £20,000? Is there anyway of getting it as a lump sum on top of £48,000 on capital and interest repayments by saying we don't want to rely on the endowment? Does this make sense?
Other best way of doing it?

thank you so much for any suggestions,
Debj

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    You can indeed re-mortgage and add the extra £20k onto the £48k - simply specify the amount and the reason to the lender
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • debj_3
    debj_3 Posts: 12 Forumite
    Thanks for your answer. So if we say it is for building work do we not get put on a higher (additional borrowing) rate?
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    You get put onto the same re-mortgage deal you are going for
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.2K Spending & Discounts
  • 247K Work, Benefits & Business
  • 603.6K Mortgages, Homes & Bills
  • 178.3K Life & Family
  • 261.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.