Remortgage vs Additional Borrowing?

Welshy16

Morning guys

after some remortgage advice please!

6 weeks away from our remortgage and I’ve currently stuck with Barclays and plan on a 2 year fix, no fee and 4.7% interest.

we have no plans to move, the only reason we were thinking a 2 year was because we are thinking of some home improvements in approx 2 years so the plan was to have that extra loan at that stage.

I’m now thinking what is stopping me currently going for a 5 year fix which will be 4.08% with Barclays but then considering additional borrowing when we have more of a form date re home improvements?

House value £435k and currently have £103k left.

i assume there’s pros and cons of both a further remortgage in two years vs 5 year fix now and then additional borrowing when we need it?

grateful for everyone’s advice!

Mark_d

I would go for the 5 year fix now, and be paying the lower rate of interest on 100k. Doing this will save you 1k over the next two years, so in 2026 you'll only need 9k for home improvements rather than 10k.

When it comes to home improvements, you will likely be paying a higher rate of interest on the loan - but the interest would only apply to 9k (vs. 110k) and would only be for two years.  Another cheap option to finance the home improvements might be a 0% balance transfer credit card.
I'm actually in a similar position to you myself.  My fix comes to an end next summer.  To free up extra money, I'm thinking or remortgaging to interest-only.  I don't know if this will be possibly but I'll talk to a mortgage broker i the new year

MFWannabe

Welshy16 said:

Morning guys

after some remortgage advice please!

6 weeks away from our remortgage and I’ve currently stuck with Barclays and plan on a 2 year fix, no fee and 4.7% interest.

we have no plans to move, the only reason we were thinking a 2 year was because we are thinking of some home improvements in approx 2 years so the plan was to have that extra loan at that stage.

I’m now thinking what is stopping me currently going for a 5 year fix which will be 4.08% with Barclays but then considering additional borrowing when we have more of a form date re home improvements?

House value £435k and currently have £103k left.

i assume there’s pros and cons of both a further remortgage in two years vs 5 year fix now and then additional borrowing when we need it?

grateful for everyone’s advice!

How much will you need for home improvements? Not sure remortgaging would be the best way to fund these anyway 
personally I’d go with the 5 year fix 

Welshy16

Hmm that’s the question, could be 30k plus we require for a loft conversion 🤪