increase mortgage or seperate loan

ribbbon

My present mortgage fixed rate runs out April but i need to borrow now (20k)for an extension starting January. I think adding it to the mortgage is the best repayment option for me but the Halifax will charge £299 to set this up now and in April i'll have to pay another £299 to sort the remainder of the mortgage!! A loan would require a big outlay on top of the mortgage which i can't afford. Can anyone advise me if there is a better option please.

aah

can't the extension wait? its not that long a time....

MortgageMamma

You have to accept that arrangement fee's are inevitable when asking for a further advance. When you remortgage in april there will be fee free deals available, but the general principle is that fee free remortgages are only suitable for low mortgages as the rates are higher, whereas with a bigger mortgage its better to pay a fee and get a lower rate

I would take the further advance and take the fee's on the cheek, make sure the further advance is on standard variable rate and then remortgage the lot together as one loan in april.

Alternatively you could pay for your extension on your credit cards then do some 0% balance transfers and pay it that way.

MM