Borrowing for extension

Spongebob82

Hi All

I’m a newbie to this....but would really welcome some guidance

In short my Wife and I would like to borrow approx £150k to further develop our property.... we have done a crazy amount of work on it already and have significantly increased equity. Bought at 75% LTV now down to 21%.... we bought the property 5 years ago and signed up for 10yr fixed mortgage at 3.8%... this was so we knew where we stood and we didn’t know what was going to happen jobs, babies, etc. Yes other rates were lower but this sucurity allowed us the freedom to invest and improve the property.

So we have 5 years to go £146k left and wish to borrow £150k more to make our dream pad.

What are the options... if any? Ideally we would go for a 5 year fix and align with current borrowing so we could remortgage all at once at the end of the term

- I assume I have to use the same provider? Their rate is higher than others and doesn’t offer any benefit for us having a really low LTV!
- Are their other ways of funding this or creative methods
- could we negotiate with my existing provider as adding £150k would leave us at 45% LTV - surely they could do something

Hope this makes sense .... appreciate it is rare case but I am getting confused info and thought best to come to the community’s with the experts

Thanks for any help in advance

ACG

If you switch lender you are presumably going to have an early repayment charge. So even though your current lender is more expensive, they will probably be cheaper than paying an ERC.

The alternative would be to do a secured loan, but that will probably also be more expensive than your current lender.