Additional Mortgage Borrowing

Good afternoon, I would really appreciate some feedback on additional borrowing.

Has anyone done this? Did it work as you had planned? Anything you would advise / hindsight advice much appreciated!

 For context we bought our property three years ago and have just left our fix, initially we planned to stay here for approx another 5 years, but with all the uncertainty have decided we’re best to just stay put for the foreseeable (10-12 years). The house is big enough and no more children on the way so this won’t change. We have already put on a new roof, installed a new bathroom and new boiler but we desperately need a new kitchen - not just cosmetic, the units are rotting, and new hall carpet and minor improvements elsewhere. We would rather borrow 10-15k on the mortgage than through a personal loan (pre-approved) because the impact on our monthly outgoings will be far less, I appreciate we will pay more interest this way but it would suit our circumstances better. If also relevant, we have steady income, totally debt free except mortgage and overpay by 15%. If we took additional borrowing we would increase the overpayment to maintain 15% and aggressively overpay in two years when I return to work. The ideal would be to take this on current variable tariff, do the work, get it revalued and refix at a presumably/hopefully lower loan to value. 

I appreciate this is information overload but we would really love to hear some expert feedback. We haven’t spoken to our provided yet and are just tossing around ideas of how it might work. We currently own about 15%. 

Thank you!

Replies

  • DensolDensol Forumite
    880 Posts
    500 Posts Second Anniversary Photogenic Name Dropper
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    You dont need to justify that much that you want to borrow extra for home improvements. Many people do it.

    The only difficulty is your loan to value. You say its already at 85% ? So borrowing more means up to 90% with your existing lender or another lender which could be tricky in the current climate. 
    Best to speak to an independent mortgage broker to see the best deals around ( if any ) for the level of borrowing you need, and to see if you meet affordability, which has tightened up a lot this year.  

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