Re-Mortgage for extension??

redrooster_2

Hi all,

Been reading the forum for a week now, but finally decided to post.....hopefully there is someone out there with some good advice.

We have a £100k mortgage which has already come out of its fixed period, currently on the halifax standard rate....ahh!

The bungalow is worth about £260k (currently) and normally i would just remortgage...however we have just got planning permission to make our bungalow into a 1 1/2 story dwelling, adding another 2 rooms. We have had quotes in and this will cost between £40K and £50k.

My question is: Is it best to remortgage as a whole, i.e the £150k (£100k + £50k) or should we have seperate mortgages? In addition, i've read a lot of comments about not re-mortgaging for a extension, and to use a loan instead...is this realistic for £50k?

Thanks in advance.

Philip

Gorgeous_George

I think the important thing is to get the price down. They can build houses for that much!

I can't see how a loan would be cheaper than a mortgage. Of course, it is possible but just check out the loan rates and pick the lowest. If you choose a new deal with an upfront fee, once that is paid you may as well borrow the rest.

Why didn't you just buy a house?

GG

redrooster_2

True!

The extension is effectively adding another 80sqm and the house is in an ideal location, hence don't want to move.

Thanks for the info.

money_maker_3

Halifax have got a few decent rates at the minute for existing borrowers so you could just ask them to increase your existing mortgage and put the whole thing onto a new rate. (New rates should show on the website tomorrow if you want to check them)
This could be quicker that a full remortgage or a secured loan application

Rabiddog_2

Loans CAN be cheaper in total IF you pay it off in a short amount of time. Eg £50k @ 15% for three years = Total paid approx £58k??
or £50k @ 6% over 20 years total paid £110k .. the longer term of the mortgage means a higher total in the end. Best is to get it on the mortgage but pay it off quickly...You could try Zopa.com