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Borrowing more on a fixed rate mortgage.
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Cariad71
Posts: 263 Forumite
Hi, I have a fixed rate mortgage but would like to borrow more to extend the property. Is this possible on a fixed rate deal? We owe £138k on a house worth £260 K and would like to borrow 30k more. Four years left on a five year deal. Thanks in advance.
Starting balance £173,000 (Sept 2012) interest only so if we do nothing We will owe this at the end of the term😁😁
Balance as of Sept 2014 £165,803
Balance as of Feb 2015 £163,360
Balance end of July 2015 £159,050
Balance as of Jan 2017.... £138,033:j
Balance as of Sept 2014 £165,803
Balance as of Feb 2015 £163,360
Balance end of July 2015 £159,050
Balance as of Jan 2017.... £138,033:j
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Comments
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No. A further advance will be based on current rates.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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You can borrow more if they let you.
Why no further overpayments on your interest only mortgage since Jan 2017?0 -
We have a fixed rate too for 5 years I believe. I think you should be able to borrow more but that would need separate approval and may be at a different interest rate.0
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Getmore4less, because we have another property worth 200kStarting balance £173,000 (Sept 2012) interest only so if we do nothing We will owe this at the end of the term😁😁
Balance as of Sept 2014 £165,803
Balance as of Feb 2015 £163,360
Balance end of July 2015 £159,050
Balance as of Jan 2017.... £138,033:j0 -
Does not answer the question.
Take £30k on that other one if cheaper0 -
I don’t understand why you need to know why I’ve stopped overpaying? It’s interest only.... I’m not obliged to overpay it. Taking a mortgage out on the other property would be more expensive.Starting balance £173,000 (Sept 2012) interest only so if we do nothing We will owe this at the end of the term😁😁
Balance as of Sept 2014 £165,803
Balance as of Feb 2015 £163,360
Balance end of July 2015 £159,050
Balance as of Jan 2017.... £138,033:j0 -
It will be part of showing affordability0
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Overpaymements do not feature in mortgage affordability guidelines. As far as I can see affordability is based on:
Your employment status
Total gross income
Any allowances you may be entitled to (and how they’re paid)
How your outgoings affect overall disposable income
Your credit history
We stopped overpaying because we now have 60k equity in the rented house in addition to being able to clear the mortgage. (Sell house 1 to clear mortgage on house 2). As you probably know, houses can’t be used as repayment vehicles so this is in addition to our repayment vehicle. So continuing to overpay was not necessary for us.Starting balance £173,000 (Sept 2012) interest only so if we do nothing We will owe this at the end of the term😁😁
Balance as of Sept 2014 £165,803
Balance as of Feb 2015 £163,360
Balance end of July 2015 £159,050
Balance as of Jan 2017.... £138,033:j0 -
Sale of subject residential property (or sale of a second property) can be used as a repayment vehicle for an interest-only mortgage in many cases, subject to criteria.As you probably know, houses can’t be used as repayment vehiclesI am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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