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Fixed rate mortgage ends this year and want additional funds??
Clare1805
Posts: 1 Newbie
Just after some thoughts/different perspectives here please...
My 5 year fixed rate ends this year and so we will need to renew. This was my first ever mortgage and I've been religiously overpaying for the past couple of years. The house prices in my area have also gone up since we took out the mortgage and am I'm therefore hoping I can slip into the next banding of the Loan-to-Value when I renew and in any case should get a better rate than 5 years ago.
At the same time I have a very old leaking garage and want to get it replaced. What I'm looking at doing would probably be around £10-15k (I want to replace with a log cabin/office kind of thing) so I would either have to take out a separate loan/pay on finance or take out additional funds on the mortgage.
If I take out a loan, I won't be able to continue to overpay the mortgage BUT if I take the additional funds on the mortgage then I probably won't squeeze into the new band for the LTV plus I'm guessing I'll end up paying more as I'll be spreading a relatively small amount of money (compared to my mortgage - I live in London!) over the 20 year period. What's my best route?
My 5 year fixed rate ends this year and so we will need to renew. This was my first ever mortgage and I've been religiously overpaying for the past couple of years. The house prices in my area have also gone up since we took out the mortgage and am I'm therefore hoping I can slip into the next banding of the Loan-to-Value when I renew and in any case should get a better rate than 5 years ago.
At the same time I have a very old leaking garage and want to get it replaced. What I'm looking at doing would probably be around £10-15k (I want to replace with a log cabin/office kind of thing) so I would either have to take out a separate loan/pay on finance or take out additional funds on the mortgage.
If I take out a loan, I won't be able to continue to overpay the mortgage BUT if I take the additional funds on the mortgage then I probably won't squeeze into the new band for the LTV plus I'm guessing I'll end up paying more as I'll be spreading a relatively small amount of money (compared to my mortgage - I live in London!) over the 20 year period. What's my best route?
0
Comments
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You need to obtain illustrations for each option and compare them. No-one can tell you what's best from the information provided.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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