We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
When to take the additional loan?
Options

jemjems01
Posts: 2 Newbie

Hi, I'm hoping someone can give me some advice. We're looking to put a downstairs extension on our property. We've had the drawings from the architect and submitted to building regs - all fine. We've booked in the builder but he can't get us in until September 2022. We want to borrow £55k which after going through the calculators should be absolutely fine. My issue is, the interest rate to take out an additional loan at the moment is 1.99%. Do we take it out now while the interest rate is good? Or do we wait and risk the interest rate to go up? I'm really not sure what to do, because obviously that's a lot of money to be sat on for an entire year. But we could also use it for things such as the new kitchen deposit. Any advice?
0
Comments
-
The main thing I would look at when taking additional borrowing is whether I fix or tracker and how that impacts the mortgage dates on renewals so things become aligned nicely at remortgage stages without ERC. Usually you can apply and hold a rate for 6 months, so the 1.99 is irrelevant in terms of dates over next 6 months.0
-
The main thing I would look at when taking additional borrowing is whether I fix or tracker and how that impacts the mortgage dates on renewals so things become aligned nicely at remortgage stages without ERC. Usually you can apply and hold a rate for 6 months, so the 1.99 is irrelevant in terms of dates over next 6 months.0
-
IAMIAM said:The main thing I would look at when taking additional borrowing is whether I fix or tracker and how that impacts the mortgage dates on renewals so things become aligned nicely at remortgage stages without ERC. Usually you can apply and hold a rate for 6 months, so the 1.99 is irrelevant in terms of dates over next 6 months.0
-
well apply, secure rate, collect money in 6 months time? in 18 months time, can apply for remortgage no issues with erc. means a 6 month period of funds in your account ready.....0
-
jemjems01 said:Hi, I'm hoping someone can give me some advice. We're looking to put a downstairs extension on our property. We've had the drawings from the architect and submitted to building regs - all fine. We've booked in the builder but he can't get us in until September 2022. We want to borrow £55k which after going through the calculators should be absolutely fine. My issue is, the interest rate to take out an additional loan at the moment is 1.99%. Do we take it out now while the interest rate is good? Or do we wait and risk the interest rate to go up? I'm really not sure what to do, because obviously that's a lot of money to be sat on for an entire year. But we could also use it for things such as the new kitchen deposit. Any advice?
I am a Mortgage Adviser - 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
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards