Remortgage or loan?

squibbs25

Hi i'm after some extra advice please.

We are arranging a re-mortgage at the mo.
Current mortgage is £53k
we are remortgaging for £60k as we have a few home improvements to make and i'd like to pay off credit cards (debt about 2k)

My question is would we be better off remortgaging for the £53k and getting a personal loan
or going a head with remortgage for 60K........(10yrs fixed @5.59 over 20 yr term = £422 pm)

Any ideas what the payment would be for £53000 (i dont know how to work it out!) again at 10 yr fixed @ 5.59 over 20 years

My head is saying stick with smaller mortgage and get loan for top up,
heart is saying stick it all in one.

Hope someone can help me unconfuse myself.
I'v completely done my own head in!!!!

Squibbs

mr_mortgage

You could choose to take it all on the mortgage, and overpay a little each month...

Or, with some lenders if you are borrowing more than the mortgage you are redeeming the excess amount is a separate loan, but at the same rate as the mortgage. Most people don't spot this nuance, and just sign the forms and a single DD comes out each month covering what someone considers 'their mortgage' but is in fact servicing two loans.

There is nothing to stop you having both loans (both secured against your property and at the same rate) on the same term length.

So you can have the best of both - the low rate and also a shorter repayment schedule for the 'top-up' money you are looking to borrow.