Wanting to take out additional lending on very low remaining mortgage issue

Plant1980

Hi all, this is probably an easy answer but I will ask anyway.

We owe 9k on our mortgage at 1.79% with 5% ERC. (1yr 10months left)

We had a quote for an additional 60k borrowing for a small extension but they quoted 5.5% for 5yr fix.

My thoughts were to pay 10% overpayment on the 9k and then remortgage with Barclays @ 4.36% 

The ERC of £400 would be offset by the lower rate savings over the term.

I couldn't think of a better way to gain the extra cash.

Apart from waiting for a slightly lower rate IF lenders reduce their rates base on BoE recent base rate reduction.

Any pointers would be appreciated.

Andy

chanz4

secured loan maybe a better idea