Borrowing More

ukman2012

Hello All,

We are looking to borrow more on our existing mortgage to convert our loft into two bedrooms, as this is cheaper than moving. We are currently on a fixed-rate mortgage with Halifax for 5 years, which ends in December 2027.

If we were to borrow more, the current fixed terms offered by Halifax are either 2 or 5 years. The dilemma is how to align the additional borrowing term with the end date of our current mortgage so that when we come to remortgage, we can combine both loans.

If we opted for the 2-year fixed term, we would be on a variable rate for just over a year. Alternatively, if we chose the 5-year fixed term, it would extend a year and a half beyond our current mortgage’s fixed term. Is there a way to match the term of the new borrowing with our existing mortgage, or would we need to endure a variable rate for a year until it is time to remortgage?

It's complicated, or maybe I am making it complicated by asking this question.

Thanks in advance if anyone understands what I am trying to convey.

BarelySentientAI

You have 3 options:

Have one of the fixes finish earlier than the other, then leave that part on the SVR until both can be renewed.

Pay the ERC to break the fix on one part when the deal ends on the other, then renew both together.

Have 2 different parts of your mortgage that each expire and need re-fixing at different times.

I have option 3.  My fix end dates at the moment are 2026 and 2030 and I will pick a new deal for each at the appropriate time.

powerspowers

I have a mortgage in 2 parts that expire at different times. It was handy when the rates went sky high as only had to remortgage half- think one half was on 1.7% whilst the other was on 5%. I haven’t really experienced a downside to this although have stayed with the same lender, just moved onto a new fix. Might be more faff/fees if looking to move to another lender when you remortgage.