Want to borrow 30K, remortgage or add to existing mortgage

[leemarkadams]

Hello all,

Currently have a joint mortgage with the wife, with a balance remaining of £56,000 on a property valued at approx £350,000 and we have 3yrs and 3 mths term left (rate is 3.79% SVR). we have been overpaid a lot in the last few years to get the term down and we were looking to pay it off ASAP.

Anyway, we are now considering buying a larger boat and in order to get the boat we want we will need to find an extra £30K to add to our current savings etc.

So, what would be the best way to get that £30K?

Option one - stick with Santander and avoid a re-mortgage?
-Extend the term of our current mortgage with Santander to 6 yrs and then borrow the 30K from them at 3.99% over 6 years? However we will look to overpay every month anyway to bring the term down again).

Option 2 - remortgage and add the 30K to the actual mortgage loan, however this will involve solicitors, surveys etc


So, what are peoples thoughts on the best way ahead, as we would still want the ability to overpay if at all possible as often as possible?

Lee

[kiethton]

Got to be cheaper to remortgage, think you can get rates a little over 1% for <60% LTV

Always worth a bat around with sarnie, helped me out in the past

[leemarkadams]

Thanks and Sarnie.....you there then?

[nct001]

kiethton said:

Got to be cheaper to remortgage, think you can get rates a little over 1% for <60% LTV

Always worth a bat around with sarnie, helped me out in the past

Don't forget the man is fortunate enough to have a very small mortgage with an end repayment within three years - an interest rate difference of even 5 per cent will be insignificant.


And most lenders will not want to lend on such a short term ie three years.

What op coulf do is avoid all the fees of remortgaging and avoid any costs of arranging mortgages as these will wipe out any interest rate saving etc.

This is a classic example of a requirement for a secured loan that is second charge. OP can keep his existing mortgage pay it off in three years and given the significant equity go and get a secured loan for the money he needs. Probably aim for base rate plus 3 or 4 percent with repayment within 10 years.

This way he doesn't interfere with his mortgage and it will be much quicker and easier.

(Done it myself many times to raise funds)