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Borrowing more mid-term / Early repayment charges
Chickenman1108
Posts: 44 Forumite
Hi all. I am currently 3 years into a 5 year fixed rate mortgage. Thinking of applying to increase the mortgage/borrow more for some home improvements (probably about 50k). Never done this before. Would I incur early repayment charges by doing this? So would it effectively be a new mortgage or would it still be classed as the same mortgage (thus not incurring any ERCs)? Thanks a lot
0
Comments
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You would take out an additional second/sub mortgage, so as not to incur fees. If you try to keep it all on the same one, you would need to redeem it and thereby incur the ERC.1
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You can apply for a seperate homeowners loan for the improvements. No need to change your existing mortgage.1
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