Borrow more from my lender, or remortgage?

Posted on 6 May 2008

I have a mortgage of 100k which is on a fixed rate of 4.84% until 1.3.10 and need to borrow 60k for an extension. Is the best thing to borrow on a home buyers loan from my existing provider? Or should I remortgage? If I go with my existing provider who is currently providing homeowners loans at 7.09% would it then be worth consolidating the amounts borrowed into a new combined mortgage in 2010?

 

Lucky you, what a great rate!  I would ask my lender first for a further advance, at the best mortgage rate they have at the moment (but not with Early Repayment charges that go beyond 01/02/10 of course!).  After that, you would normally find out what the best remortgage deal would be but I shall tell you for free right now, there is no chance that a remortgage deal anywhere could come anywhere near competing with your 4.84%.

 

Yes, in 2010, you simply need to have a look at whether you can get a better rate if you consolidate the two.

 

Katie.

 

 

Answers provided in response to Ask Katie are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Katie will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Question