Additional mortgage borrowing

Chelseals123

Hi all- I'm looking for some brief advice please.

Myself and partner bought our house for £315,000 A year and a half ago. Our mortgage was for approx £264,000. It was a complete house renovation so have spent the past year doing lots of work to the house. We've now run out of runs to complete the house. We have talked about asking to borrow an additional £15,000 or so from the mortgage company. I know this can be done, but would it be an advance? Our credit history is excellent, and our earnings are more than of 18 months ago too.

Does this sound realistic?

ACG

It is classed as a further advance.

Bare in mind if you do this, you will have 2 separate end dates on your mortgage deals so trying to switch lender down the line would mean paying an early repayment charge or sitting on the SVR for a while to get them to line up.

You could look at a secured (or unsecured) loan for what you need and then remortgage it all to get in 6 months (assuming you did d a 2 year fix).

Moneyminded

What is the end date of your fixed rate? Assuming you are on a fixed deal. How urgent are the renovations? Is it something urgent like a new roof that would cause more damage if you didn't tackle it now or is it more that you would like a nicer kitchen?

If it is more of a case of a want rather than a need I would wait until the end of your fixed term deal and add the additional funds then. You could even save in the meantime so you require less. If it is urgent could you look at getting a loan?

As ACG pointed out above having an additional mortgage with a different end date could be tricky further down the line.

Chelseals123

Thanks both- I had assumed naturally that the extra funds would tie in with the mortgage for some reason so we wouldn't have the problem of different end dates. So the money can't be added onto the loan in terms of years (ie. £15,000 added over the 30 years)? I'm fairly sure we have a 3 year fixed. I can't seem to find a loan that repays over more than 5 years, which means an extra few hundred a month and a higher interest rate �� the works aren't urgent, but equally they can't be left too long either