Borrowing More, Paying what???

Justanotherfish7251523

Hi All,

In October 2026 we need to remortage and get a new deal as our fixed term is over. We are thinking of borrowing more at that point to refurbish and extend the house. At that point we will have 11 years left on our mortgage, owing about 114,000. Our property value as it stands without extending is 350,000. Say we were to borrow 175,000 extra at that point to do the works, at todays interest rates, and decided to continue to pay the balance off by the end of the 11 years, what would our monthly payments be?

Big question but there you go!

Thank you.

BarelySentientAI

You mean that?

https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/

Justanotherfish7251523

Hi, thanks for that.

I'm pretty clueless; Do things not change if you are borrowing for refurbishments? Does it make a difference if you have 11 years left but you've been paying off the mortgage for 14 years before we take on the extra borrowing?

Justanotherfish7251523

Also, if you don't pay the same back throught the term of the mortgage; as in you end up paying more interest in the early years. Does this mean if you change your mortgage every few years to find a better rate or to borrow more like this, you are always in that period at the beginning of the mortgage and paying more in interest???

BarelySentientAI

No, not really.

You will owe them 114 + 175 (so 289), to pay off in 11 years, at whatever interest rate you can get (so I used 5% for ease).  Doesn't matter what for, or whether you used to owe £1million or 50p.

MWT

Justanotherfish7251523 said:

Hi, thanks for that.

I'm pretty clueless; Do things not change if you are borrowing for refurbishments? Does it make a difference if you have 11 years left but you've been paying off the mortgage for 14 years before we take on the extra borrowing?

No, all that matters is the balance on the mortgage and the remaining term, how you got there and what you have paid before has no impact on what you will pay in the future.

Some people mistakenly believe the interest is some how front-loaded, but it isn't, it is just that in the early days when the balance is high the amount to pay in interest is also high compare to the amount you are paying off that balance each month.

Justanotherfish7251523

I see, that's great. Thank you all for your help, much clearer now!
Cheers!