Extension - release equity or remortgage

lilibetla

Hi, I have a question about funding an extension. I have a 4 bed detached worth about £280,000 with a mortgage of about £150,000. We have been toying between either moving or extending and have settled on extending and would like to do work totalling £40,000.

Our mortgage is coming to the end of our current 2 year fixed rate so will be renewing/shopping around in a couple of months. Would we be better to release equity or increase our mortgage (or are these actually the same thing?) Whilst we are sure this makes sense for our house (one just like ours with this extension just sold for £350,000) we have no idea what we're doing when it comes to the mortgage (blush) Any kind advice very gratefully received thanks!

Richard_Pia

It's effectively the same thing, you will be doing a remortgage with capital raising. Most lenders are happy with this.

When does your current fixed rate end? With some lenders, mortgage offers are valid for 6 months so it's possible to secure a new deal well in advance of your current one ending.

lilibetla

Ah brilliant, thank you! I think our current one ends in May so we'll start looking now. Thanks again for the advice.

Richard_Pia

You're very welcome, I hope you can find a good deal.